Shenwan Hongyuan: DeepSeek accelerates AI edge deployment, focusing on investment opportunities in the materials sector

According to the Zhitong Finance APP, Shenwan Hongyuan released a research report stating that DeepSeek is catalyzing the AI competition from a computing power arms race to efficiency optimization. The low cost and open-source attributes are accelerating AI's move towards scenario-based applications, with the industrial chain transitioning from cloud infrastructure to rapid AI application and edge AI phases. In terms of restructuring costs, this will drive AI competition from a computing power arms race to efficiency optimization. The combination of "computing power + algorithms + applications" remains unchanged, and as AI's long-term penetration rate in various industries increases, the demand for computing power as a foundation will continue to grow. Additionally, the acceleration of edge computing, significant cost reductions, and the democratization of technology post-open-source will expedite AI's transition to scenario-based applications, with AI applications and edge AI expected to accelerate.

AI embedding will bring widespread hardware upgrades, and close cooperation in the industrial chain will create investment opportunities, with a focus on materials:

Semiconductor Materials:

1. The demand for high-performance chips and advanced packaging technology continues to grow. AI smartphones, AIPC, and other terminals are driving the recovery of demand for general-purpose storage chips. Against the backdrop of domestic substitution and self-control, key semiconductor companies like SMIC and Longsys will continue to benefit. Recommended: Yoke Technology, Dinglong Co., Ltd., Huate Gas, Lianrui New Materials, etc.

2. The structural upgrade of AI servers will drive innovation in the demand for upstream components and materials. The performance of copper-clad laminates directly affects the speed and quality of signal transmission in PCBs. The electronic resin system is key to improving CCL performance, with BMI, PPO, and OPE resins standing out, while ODV and PTFE are expected to become future iteration directions. Recommended: SQ Group, Dongcai Technology, etc.

Thermal Materials:

With the acceleration of AI smartphones, AIPC, and smart vehicles, thermal upgrades are particularly important to avoid a series of issues caused by overheating of core SoC chips during operation. The demand for thermal materials such as heat pipes, heat spreaders, thermal interface materials, and graphite films is continuously growing, especially as the penetration rate of heat spreader solutions is expected to continue to rise. Recommended: Suzhou Tianmai, Jieban Technology, etc.

Display Materials:

In the short term, the new purchase subsidies for digital products such as smartphones announced by the National Development and Reform Commission have activated the consumer electronics market, driving growth in upstream display material demand. Looking ahead, the improvement in hardware performance and the gradual clarification of application scenarios lay a solid foundation for a large-scale replacement wave of AI edge devices, with the panel display industry expected to see an upward trend. Recommended: 1) OLED materials: Ruilian New Materials, Lite-On Optoelectronics, etc.; 2) Film materials: Sidike, Tianlu Technology, etc.

Robot Materials:

With AI and DeepSeek's push for intelligent equality driving significant advancements in robot algorithms, the integration of robots and models is expected to open a new phase of intelligent upgrades. As humanoid robots gradually move towards practical applications, upstream material companies will also benefit. Recommended: 1) Flexible sensors: Fulei New Materials; 2) Lightweight materials: Zhongyan Co., Ltd. (PEEK), etc.; 3) Magnetic materials: Xinlaifu (Samarium Iron Nitride), etc.

Key recommended targets:

1. Semiconductor materials: Yoke Technology (002409.SZ), SQ Group (605589.SH), etc.; 2) Thermal materials: Suzhou Tianmai (301626.SZ), etc.; 3) Display materials: Ruilian New Materials (688550.SH), Lite-On Optoelectronics (6881504.SH), etc
2. Robotic materials: Fule New Materials (605488.SH) and others.

Risk Warning:

1. The implementation speed of AI at the edge is slower than expected; 2) Terminal demand is lower than expected; 3) Industry competition is intensifying