Seeing the bill of materials diagram for the NVIDIA VR200 rack compiled by Morgan Stanley, I can't help but feel emotional. Is NVIDIA really fighting alone these days? Its entire rack requires the participation of many components. Besides its GPU, there's storage, PCB, MLCC, ABF substrate, liquid cooling, and every part of all these accessories is supplied by the world's top-tier suppliers. It even forces major manufacturers to upgrade their technology in reverse, ensuring it's the most advanced in the world, bar none. Therefore, every generation of NVIDIA's products is the pinnacle great product of its time.

Moreover, NVIDIA has physically locked in production capacity. If others want to buy high-end storage HBM, it's already sold out. If they also want TSMC's foundry capacity, it's already been sold out in advance by NVIDIA. If it weren't for those stubborn old folks at TSMC unwilling to expand production on a large scale, one can't imagine how much money NVIDIA could make in a quarter. What's limiting NVIDIA now are these key manufacturers: TSMC, and the storage from SK Hynix and Samsung. Just like building ASML lithography machines, it's the crown jewel of the crystallization industry developed through the joint efforts of countries worldwide. How could NVIDIA's VR200 be any different? Every single item must be supplied by the world's best suppliers. It's the industrial crystallization of the AI era, a peak product that can only be made through the joint efforts of the whole world.

To sum it up:

1️⃣ NVIDIA is a very great company, and it's a geek that maintains a sense of crisis and constantly pushes the limits of its own technology. It's the undisputed AI leader, driving the development of computing power. $NVIDIA(NVDA.US)

2️⃣ Apart from the GPU, high-end storage (HBM, LPDDR5, NAND flash) has already become the second most expensive cost, and it's also the one rising the fastest and highest. In other words, NVIDIA is working for the storage manufacturers. The more VR200s NVIDIA sells, the more the storage manufacturers earn. NVIDIA works hard to sell for you, while storage only needs to work hard on production without even needing promotion. And since VR200 hasn't shipped yet, the real big performance of storage hasn't followed VR200's explosion. In the second half of the year, storage will only be more profitable, and the financial reports will only be more stunningly amazing! $Sandisk(SNDK.US)

$Micron Tech(MU.US)$XL2CSOPHYNIX(07709.HK)