Guosheng Securities has released a research report stating that against the backdrop of continuously increasing power density in AI servers (single chip from 700W to 1000W+), the thermal resistance structure is undergoing changes. While the capabilities of cold plates continue to strengthen, the proportion of thermal resistance caused by insufficient interface contact has significantly increased. TIM is being upgraded from a low-value auxiliary material to one of the key links affecting the upper limit of heat dissipation efficiency. With the ongoing expansion of AI computing power, TIM is expected to become a critical segment in the liquid cooling industry chain, combining the attributes of a high-frequency consumable with the elasticity of technological advancement.
The main viewpoints of Guosheng Securities are as follows:
Recent marginal changes have occurred on the materials side of liquid cooling. In February 2026, Akash Systems delivered the world's first batch of NVIDIA H200 servers utilizing diamond cooling technology to the Indian cloud provider NxtGen, reportedly reducing GPU hot spot temperatures by approximately 10 degrees Celsius. Separately, Indium Corporation disclosed that as the power consumption of AI GPU/ASIC increases beyond 800W, liquid metal TIM is undergoing accelerated validation for bare-die chips and entering the engineering introduction phase.
TIM, or Thermal Interface Material, serves to fill microscopic gaps, with its core function being to reduce interface contact thermal resistance. In the context of rising AI server power density, the structure of thermal resistance is shifting. TIM is transitioning from a supplementary material to a crucial component influencing maximum heat dissipation efficiency.
The upgrade in TIM technology is driven by increasing power density, which necessitates engineering path evolution. Traditional thermal greases offer limited thermal conductivity, whereas liquid metal TIMs provide significantly higher conductivity and excellent wettability, leading to lower interface thermal resistance and improved cooling efficiency. However, challenges related to corrosion, reliability, and packaging processes mean this technology is still in its early adoption stages. Diamond-based cooling materials, which have garnered market attention, function more as heat spreaders to reduce hot spot heat flux density. They work in conjunction with TIM materials to enhance overall cooling efficiency rather than acting as replacements.
From an industry progress perspective, TIM material innovation is currently in the transition from validation to introduction. On the GPU side, NVIDIA currently primarily uses high-end thermal grease but is exploring higher-performance TIM solutions for its next-generation platforms. On the ASIC side, self-developed chips are also seeing increased power levels, accompanied by related R&D into supporting liquid metal TIM materials. The division of labor between materials is becoming clearer: liquid metal addresses the "interface contact thermal resistance" issue, representing the current upgrade path for TIM, while diamond materials address "hot spot spreading" and are more relevant to internal packaging materials.
Regarding potential investment targets, it is suggested to focus on leading companies with technical expertise in metal TIMs, alongside domestic firms with relevant material platforms. Investors should be mindful of risks including slower-than-expected progress in computing power, slower AI development, and technological innovation risks.