1、Asia AI thermalANCHOR REPORTGlobal Markets Research17 September 2024Riding the wave of liquid coolingAs air cooling for AI servers is approaching the limit of its cooling capacity,the importance of liquid cooling is becoming increasingly evident.GB200 NVL36(66-80kW per rack)requires liquid-to-air(L2

2、A)and GB200 NVL72(132-160kW per rack)requires liquid-to-liquid(L2L)solutions.As we believe that nVidias recent roadmap adjustment is a positive step toward building a more complete product lineup,we raise our AI server growth outlook for 2025-26F.Although the newly introduced air-cooling GB200A Ultr

3、a and the Blackwell delay have fueled some concerns about the liquid-cooling market recently,we still think the high-end training demand from top CSPs(cloud service providers)will increase demand for the GB200(which requires liquid cooling),and there appears to be increasing adoption of liquid cooli

4、ng for improved energy efficiency and cost savings.We estimate liquid coolings penetration rate in nVidias AI servers will rise from 8%in 2024F to 43%/47%in 2025/26F.In addition,we estimate the size of the global liquid cooling market will reach TWD122.9bn/TWD129.2bn in 2025F/26F,from TWD1.7bn/TWD12

5、.1bn in 2023/24F,and cold plates/CDU/manifold will take 40-55%/30-40%/15-20%value share of the liquid cooling market in 2024-26F.After the expectation reset,we think the valuations of thermal players are turning attractive.We initiate coverage of AVC and Auras at Buy,and reiterate our Buy ratings on

6、 Delta,Nidec,and Envicool.In this report,we also summarize the liquid-cooling supply chain matrix for top CSPs and ODMs(original design manufacturers),discuss the development of liquid cooling technology,and compare the competitive advantages of each supplier.Research AnalystsAsia TechnologyAnne Lee