CICC expressed in a research report that at the GTC 2026 conference, NVIDIA upgraded its Rubin liquid cooling solution. The power consumption of the Rubin GPU has now exceeded 2000W, with the Vera Rubin NVL 72 single cabinet power reaching approximately 225kW. Traditional air cooling is gradually being phased out, making liquid cooling a mandatory option with 100% penetration rate in the Rubin generation, unlocking growth potential in both volume and value for liquid cooling solutions. On the power supply side, the GTC conference further clarified the technological development roadmap for primary power systems. In the short term, the 800V HVDC distributed sidecar solution is expected to become mainstream, with 2026 anticipated to mark the beginning of the 800V HVDC era. The first-generation product is rated at 660kW, with subsequent iterations potentially advancing to 1.2MW. Key points from CICC are as follows:

Liquid Cooling: The Rubin liquid cooling solution is being upgraded, with the LPU contributing incremental demand. The power consumption of the Rubin GPU has surpassed 2000W, and the Vera Rubin NVL 72 single cabinet power is around 225kW. As traditional air cooling fades out, liquid cooling has become essential in the Rubin generation, offering growth in both volume and value: 1) Volume: Rubin cabinets may feature independent small cold plates for cooling network cards, PDBs, and BlueField modules. CPO switches also adopt 100% full liquid cooling, increasing the usage of cold plates, quick connectors, and piping. 2) Value: GPU cold plates utilize microchannel technology with gold plating, potentially enhancing their value. Additionally, NVIDIA's newly launched Groq LPX inference chip employs a liquid-cooled cabinet design, which could represent a significant new source of demand for liquid cooling.

Power Supply: The sidecar solution has been officially launched, positioning 2026 as the inaugural year for 800V HVDC. The main developments on the power supply side at the GTC conference focused on primary power systems. Electrical equipment manufacturers such as Delta Electronics and Shenzhen Megmeet Electrical Co.,Ltd. unveiled 800V HVDC sidecar and DC-DC power solutions. Based on the various technical solutions and parameters presented, the conference helped solidify the technological development path for primary power systems. The 800V HVDC distributed sidecar solution is poised to become mainstream in the near term. 2026 is viewed as the starting point for 800V HVDC adoption, with 660kW as the first-generation product, potentially followed by iterations up to 1.2MW.

Valuation and Recommendations: Considering a decline in the gross profit margin of the company's main business due to rising raw material costs and increased expenditure on its AIDC business, the net profit forecast for Shenzhen Megmeet Electrical Co.,Ltd. in 2025 has been lowered by 63.2% to 140 million yuan. The profit forecast for 2026 remains unchanged at 1.055 billion yuan, and a profit forecast of 1.460 billion yuan has been introduced for 2027. Given that the company's AIDC business is expected to enter a realization phase in 2026 and considering an upward trend in market valuation benchmarks, the target price has been raised by 52.6% to 145 yuan. The current share price and target price correspond to P/E ratios of 40.9x and 29.5x for 2026 and 2027, and 57.2x and 41.3x for 2026 and 2027, respectively, indicating a potential upside of 39.8%. An Outperform industry rating is maintained.

CICC maintains a positive outlook on the high growth prospects of future AI data center construction demand, which is expected to drive concurrent evolution in power supply and liquid cooling requirements. Recommended stocks include: Shenzhen Megmeet Electrical Co.,Ltd. (002851.SZ), Shenzhen Uugreenpower Co., Ltd. (301590.SZ), and Sanhe Tongfei Refrigeration Co.,Ltd. (300990.SZ).

Risk factors include potential delays in the shipment of NVIDIA's Rubin GPUs, slower-than-expected mass production of the NVIDIA Rubin U, and setbacks in the commercialization of 800V HVDC technology.