--- title: "China Merchants Securities: Strong overseas AIDC demand, HVDC gradually becoming consensus" type: "News" locale: "en" url: "https://longbridge.com/en/news/251397935.md" description: "Vikram, Delta, Megmeet, and other upstream suppliers have also successively released relevant solutions, and HVDC is gradually becoming a consensus" datetime: "2025-08-04T07:26:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/251397935.md) - [en](https://longbridge.com/en/news/251397935.md) - [zh-HK](https://longbridge.com/zh-HK/news/251397935.md) generator: "portal-rs" --- # China Merchants Securities: Strong overseas AIDC demand, HVDC gradually becoming consensus According to the Zhitong Finance APP, China Merchants Securities released a research report stating that in the second quarter of 2025, capital expenditures by overseas cloud service providers (CSPs) are expected to surge by 45% year-on-year to $334 billion, with demand for AI computing infrastructure continuing to exceed expectations. The competitive advantages of HVDC solutions are becoming apparent, gaining recognition from CSPs, chip manufacturers, and power system suppliers, and are gradually becoming an industry consensus. It is recommended to pay attention to the opportunities in the industrial chain brought about by the upgrade of power systems in data centers. ## The main points of China Merchants Securities are as follows: **Major overseas CSPs achieved better-than-expected operations in the second quarter, with capital expenditures reaching new highs** Both Google and Meta have raised their annual capital expenditure targets. Major participants in overseas AIDC infrastructure also performed well in the second quarter, with Veeco's revenue and profits significantly exceeding market expectations, and its order backlog reaching a new high, leading to a second upward revision of its revenue guidance within the year. Driven by the application of large models, the AI server cabinets in the data center industry are transitioning from kilowatt-level to megawatt-level, and the competitive advantages of HVDC solutions are becoming recognized by CSPs, chip manufacturers, and power system suppliers, gradually forming an industry consensus. **Overseas CSPs exceeded expectations in the second quarter, with capital expenditures continuing to rise** In the second quarter, Google Cloud, Microsoft Azure, and Amazon AWS all achieved double-digit revenue growth, outperforming market expectations. Considering the sustained strong end-user demand, companies increased capital expenditures in the second quarter to build AI-related infrastructure, with quarterly capital expenditures reaching historical highs. Additionally, Google and Meta have raised their annual capital expenditure targets, with Meta doing so for the second time this year. In total, the four CSPs are expected to reach $334 billion in capital expenditures in 2025, a 45% year-on-year increase. The construction of AI-related computing infrastructure remains the main investment direction for these companies. **Core suppliers of overseas AIDC performed well** The major participants in overseas AIDC infrastructure performed impressively, with Veeco's Q2 revenue and profits significantly exceeding market expectations. As of the end of the second quarter, its order backlog reached a record high of $8.5 billion, maintaining an order-to-sales ratio above 1 for multiple quarters, indicating strong order intake. Based on end-user demand and order conditions, Veeco has raised its annual revenue guidance to $10 billion for the second time this year. Furthermore, after acquiring liquid cooling manufacturer CoolTera at the end of 2023, it announced the acquisition of rack manufacturer GreatLakes in July this year, further increasing its investment in the data center field to meet the strong demand from global customers in AI scenarios. **HVDC is gradually becoming a consensus** Against the backdrop of significant development in the AI industry, the power of AI server racks is transitioning from kilowatt-level to megawatt-level. The limitations of traditional power systems in terms of space, copper bus usage, and efficiency are becoming apparent. HVDC is an effective solution to address these issues, also offering advantages in heat dissipation and scalability. Among them, the +/-400V solution can utilize the mature supply chain system from the electric vehicle industry, potentially becoming the mainstream in future development. During GTC 2025, NVIDIA released the 800V high-voltage DC Kyber Side Car, promoting the iteration of power infrastructure in data centers Vidy, Delta, Megmeet, and other upstream suppliers have also successively released relevant solutions, and HVDC is gradually becoming a consensus ### Related Stocks - [002851.CN](https://longbridge.com/en/quote/002851.CN.md) ## Related News & Research - [TECHNICALS-CBOT wheat may retest support at $7.54-3/4](https://longbridge.com/en/news/297752187.md) - [Teqnion agrees to acquire Scotland-based Abercromby Vending](https://longbridge.com/en/news/297759475.md) - [REG - Helix Exploration - Rudyard Operational Updates](https://longbridge.com/en/news/297935036.md) - [Xiaomi sets September 7 launch for 18 Fold foldable phone](https://longbridge.com/en/news/297748864.md) - [Ongwe Minerals files NI 43-101 technical report for Khorixas Gold Project in Namibia](https://longbridge.com/en/news/297960172.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**