Shanxi Securities released a research report stating that NVIDIA will launch Spectrum-XGS Ethernet DCI products. NVIDIA's entry is expected to accelerate the construction of computing power network interconnection (DCI), with long-distance optical modules, L3 layer switches, and DCI transponders being the main benefiting segments. DeepSeek V3.1 has been released, utilizing UE8M0FP8Scale parameter precision, which is expected to increase domestic chip adaptation. The market continues to accelerate rotation among sectors along the AI computing power mainline theme and is expected to reach new highs. In the short term, it is recommended to focus on logic over space and pay attention to marginal changes in individual stocks, while using performance to set safety margins and seize opportunities for adding positions on pullbacks. Recommended stocks include Dekeli (688205.SH), Eoptolink (300620.SZ), Shine Technology-U (688702.SH), CICTG Mobile-U (688387.SH), and others.
Key viewpoints from Shanxi Securities are as follows:
NVIDIA will launch Spectrum-XGS Ethernet DCI products and redefine "scale across." NVIDIA will officially launch the Ethernet-based DCI product Spectrum-XGS at HotChip 2025, designed to connect data centers in different geographical locations to create gigawatt-scale AI super factories. NVIDIA believes that scale-up and scale-out can no longer meet terawatt-scale AI demands due to single-cabinet power limits and data center physical space constraints. Spectrum-XGS addresses cross-regional GPU cluster communication latency, congestion, and synchronization challenges through core algorithms (dynamic adaptation to long-distance network characteristics), hardware collaboration (leveraging ConnectX-8 network cards, Spectrum-X switches, and Blackwell architecture chips), and full-stack software optimization (Dynamo, Speculative Decoding). The product's initial users will include CoreWeave and are expected to support the Stargate project promoted by Oracle, SoftBank, and others.
NVIDIA's entry is expected to accelerate computing power network interconnection (DCI) construction, with long-distance optical modules (including coherent, lite-coherent, and ZR), L3 layer switches, and DCI transponders being the main benefiting segments. New optical fibers such as hollow-core fiber and G.654.E are also expected to emerge in new DCI projects. Additionally, the domestic Ethernet AI network standard GSE led by China Mobile also features "logical long container" technology design that can effectively address bandwidth fluctuation issues between cross-regional data centers. We recommend paying attention to network cards, switching chips/switches, optical modules, and other GSE participating companies.
DeepSeek V3.1 released with upgraded agent capabilities and native optimization for next-generation domestic FP8 chips. On August 21, DeepSeek V3.1 was officially released. This upgrade mainly brings hybrid inference architecture, higher thinking efficiency, and better performance in tool usage and agent tasks. According to evaluations, DeepSeek V3.1 shows significant improvements in programming agents and search agents compared to the previous DeepSeek R1-0528.
Two highlights of DeepSeek V3.1: First, the significant performance improvement achieved through post-training based on the V3 foundation model proves that RL post-training remains an effective and scalable approach. Second, it uses UE8M0FP8Scale parameter precision, with DeepSeek emphasizing this is specially optimized for next-generation domestic chips to be released soon.
The market has high expectations for DeepSeek's next-generation model release. The mainstream trend should be significant performance improvements in chips under chiplet architecture, substantial MoE performance enhancements under super-node architecture, and further strengthening of hardware-software collaboration (such as native FP8 support). Domestic chips may gradually transition from "usable" to "user-friendly," with next-generation Ascend 910 chips potentially approaching mainstream international levels, significantly expanding market space for second-tier GPU manufacturers, and creating substantial elasticity for super-node related components (such as cable tray copper connections, domestic switching chips, optical modules under all-optical solutions, OIO, etc.).
Recommended focus areas: DCI: Dekeli, Eoptolink, Innolight, Wantong, Yangtze Optical Fibre and Cable, Hengtong Optic-electric OCS: Eoptolink, Luster LightTech, Angst Technology, Silex Microsystems, T&S Communications, LongXin Technology Domestic Super-node: Shine Technology, Luxshare Precision, Convergence Technology, Huafeng Technology, WOL New Material, RAK Wireless, ZTE Commercial Aerospace: CICTG Mobile, Shanghai Hanxun, Tongyu Communication, ZLINGSMART, Tianyinelectro-mechanical, Shanghai Harbor
Risk Warning: Overseas computing power demand falling short of expectations, domestic operator and internet investment below expectations, intense market competition leading to price declines exceeding expectations, escalation of external sanctions.