AI server second-tier manufacturers Industrial Fulian performance is expected to double digit growth, seize market share

     With the vigorous development of the artificial intelligence (AI) industry, the continued strong growth in the demand for AI computing power has brought unprecedented opportunities to the entire industry chain. In this AI technology revolution, some server manufacturers who were originally in the second tier of the industry are gradually emerging, among which, Industrial Fulian with its excellent performance and strategic layout in the field of AI servers is expected to achieve double-digit growth in performance and become an important competitor in the market.

     In the first quarter of 2024, the operating income of Industrial Fulian reached 105.889 billion yuan, of which cloud computing business revenue accounted for nearly half, setting a new high in a single quarter. It is worth mentioning that its AI server revenue accounted for nearly 40% of the overall server revenue, an increase of nearly two times. This achievement was achieved thanks to the acceleration of the application of large models of global cloud service providers and the promotion of the generative AI boom, resulting in a surge in global AI server demand.

     As a leading enterprise in AI servers, the growth of industrial rich Union is not achieved overnight. The company has been "drinking soup" in a number of hot industries for a long time, from the supplier of Apple in the smartphone era to the close cooperation with AI giants such as Nvidia, and the market value of Industrial Fulian has also experienced a substantial growth from years of silence. As of April 29, 2024, the company's market value reached a staggering 487.1 billion yuan. Zheng Hongmeng, chairman of Industrial Fulian, said that training AI large models requires effective big data, large computing power and scale parameters, which directly drives the demand for graphics processors (Gpus), which in turn promotes the rapid growth of the AI server market.

     Public information shows that computing power, algorithms and data are the three major elements of the development of the AI industry, and AI servers are the carriers of computing power. In 2023, with the popularity of applications such as ChatGPT, large language models (LLM) and generative AI have received widespread attention, triggering a computing power race that is driving the continuous expansion of hardware infrastructure. In this context, the AI server market has maintained a rapid growth trend. According to MIC and Trendforce estimates, global AI server shipments in 2023 exceeded 1.25 million units, an increase of more than 47%, and are expected to increase to 194 million units in 2024.

     Zheng Hongmeng further introduced that Industrial Fulian will continue to make every effort to seize AI opportunities and promote the technological innovation and seen application of AI servers, data centers, high-speed network equipment and other products to increase market share. Industrial Fulian not only made breakthroughs in product technology, but also strengthened the company's position in the AI industry chain through deep cooperation with AI giants such as Nvidia. The company recently exhibited technologies and solutions such as next-generation AI servers and liquid-cooled cabinets developed in partnership with Nvidia, providing strong computing power support for high-performance AI data centers around the world, while also focusing on providing cost-effective and sustainable applications.

     Looking ahead, Cheng said in an earnings presentation that "by 2024, the company's AI servers are expected to account for 40% of the global market share." This forecast not only shows the deep understanding of the AI market, but also reflects the company's competitiveness and influence in the global AI industry chain.

     With the further development and deepening of the AI industry, Industrial Fulian is expected to continue to enhance its competitive position in the industry and gain more market share and profits by relying on its comprehensive layout of GPU modules, substrates and back-end AI server design and system integration in the upstream of the AI industry chain. In the face of fierce industry competition, Industrial Fulian relies on its intelligent manufacturing and research and development advantages of the whole industry chain to provide customers with the overall solution capability from modules, substrates, servers to data centers. This capability is particularly critical in the current context of rapid development of AI technology and is expected to help the company gain a better position in the future market competition.