Nvidia Drops Again: Game Changer! Spectrum-X Architecture Launches, Who Will Take 70% of the 140 Billion?

NVIDIA’s Jensen Huang has once again dropped a bombshell: a game-changing product! [Taogu Ba]
And it’s a new model born specifically for the Chinese market!
Currently, China’s AI computing power faces the “Impossible Triangle”: high-end computing power (NVIDIA ecosystem), independent controllability (domestic chips), and cost control—difficult to satisfy all at once.
The combination of NVIDIA MGX open rack and Spectrum-X network offers an optimal “curve to save the country” solution.
What do you think? Is there potential for imagination? This has caused Cambrian to surge 5% today, Moore to jump 8%, and Mu Xi to rise 13%. Do you think this is enough weight? Let’s analyze why this is important overall.

1. Macro Background: Industry Dilemma and Breakthrough Under Triple Constraints
China’s AI computing industry currently faces structural contradictions. A single technical route struggles to meet policy, performance, and cost requirements simultaneously:

Conclusion: The market urgently needs a hybrid architecture of “existing assets + incremental complement”, which can leverage the current NVIDIA ecosystem and legally introduce domestic computing power.

2. Policy and Industry Significance of MGX Open Rack
Note: The MGX reference architecture will be officially released at GTC 2024, with large-scale deployment expected by 2026.

NVIDIA’s MGX open rack architecture and its Spectrum-X network platform provide the physical and logical foundation for hybrid deployment:

Physical Compatibility: Modular design allows flexible configuration of different brands of accelerators at the rack level (supported by software abstraction).
Network Decoupling: Using Spectrum-X Ethernet technology, breaking the closed nature of private interconnects (like NVLink), supporting efficient interconnection of multi-brand chips.
Compliance Path: Purchase domestic chips to fill the rack + access NVIDIA’s software ecosystem via standard Ethernet. This does not directly bypass chip sales restrictions but opens network architecture to enable heterogeneous computing in restricted environments, reducing reliance on a single source.

3. Hybrid Deployment vs. Traditional Deployment: Value and Efficiency Comparison

2. Technical Core: Spectrum-X Architecture—The “Central Hub” of Heterogeneous Computing Interconnection
Spectrum-X is not just a network upgrade but an operating system for heterogeneous compute clusters. Its core value lies in replacing “closed private interconnect” with “open Ethernet,” solving the “language barrier” among multi-brand chips.

1. Architecture Positioning: From “Private High-Speed” to “Open Efficient”
   Traditional pain points: NVIDIA NVLink offers high performance but is closed; domestic chips cannot access it; general Ethernet performance is weak and cannot support large model training.

Spectrum-X Breakthrough: The industry’s first Ethernet platform designed specifically for AI.
Performance: 1.6 times higher than general Ethernet for AI networks.
Components: Spectrum-X switches + Spectrum-X SuperNIC (smart NIC).
Significance: Enables domestic chips to communicate via standard Ethernet protocols, approaching NVLink performance, creating a unified logical pool of “NVIDIA computing power + domestic computing power.”

2. Three Core Technologies Breakdown
3. CPO (Co-Packaged Optical) Scale-up Prelude
   Current Status: During GTC 2024-2026, CPO-based optical switches (like Spectrum-X Photonics) will begin commercial use.

Key Metrics: Single switch chip bandwidth reaches 102.4Tb/s, with power consumption only 5% of traditional copper cables.
Industry Impact: Optical modules shift from “pluggable” to “co-packaged,” challenging traditional optical module manufacturers; companies with silicon photonics capabilities (like SourceJie, Zhongji) will benefit, while pure assembly manufacturers face pressure.
2. Protocol Optimization Based on Open RoCEv2 Standard

Technical Breakthrough: Dynamic routing and congestion control to solve packet loss issues in Ethernet.
Significance for Hybrid Deployment: Eliminates protocol conversion losses when connecting domestic chips like Heguang, Mu Xi, and NVIDIA chips.
Policy Logic: Network layer neutrality. As long as RoCEv2 standard is met, chips from any source can join the cluster. This is a technical prerequisite for hybrid deployment.
3. End-to-End Collaboration (SuperNIC + Switch)
Using BlueField-3/4 DPU to collaboratively process data packets, offloading network load from CPU, ensuring network does not become a bottleneck in hybrid compute scenarios.

3. Core Incremental Recognition: Hybrid Server Manufacturers
(1) Core Logic for the Rapid Increase in Hybrid Server Demand

1. Immediate Scenario Need: Optimal solution under policy restrictions
   Under US-China chip restrictions, domestic companies face a dilemma:

(2) Technical Barriers: Industry Concentration as a Key Driver
Hybrid servers are not just simple upgrades of traditional servers; they require two core capabilities:
Chip Compatibility: Must support both NVIDIA GPUs and domestic GPUs (Heguang, Mu Xi, etc.) hardware interfaces.
Network Compatibility: Deep integration with Spectrum-X architecture’s CPO switches and high-speed interconnect protocols.
These technical barriers increase industry concentration, with leading server vendors likely to seize the market first.

(3) Market Size Estimation
Global Perspective: The global AI server market is expected to exceed $260 billion by 2026, with hybrid architecture accounting for about 30%.
China Perspective: The Chinese AI server market will reach about 350 billion RMB by 2026, with hybrid servers exceeding 40% (around 140 billion RMB).
Growth Drivers: “East Data West Computing” project, cost reduction and efficiency improvement needs of internet giants (ByteDance, Alibaba), and government-enterprise innovation demands.

Core Scenario Needs:

4. Future Market Outlook

1. Demand Side: Dual-Driven Pattern

2024-2025 (Introduction Period): Leading internet companies pilot hybrid clusters, validate Spectrum-X architecture.
2026-2027 (Explosive Growth): AI data centers standardize on hybrid architecture, domestic chip share significantly increases, hybrid server CAGR exceeds 80%.
2028+ (Maturity): Establish a mature ecosystem of “chip heterogeneity, network unification, software compatibility,” extending to edge computing and autonomous driving.

2. Supply Side: Industry Concentration
   Matthew Effect: Leading server vendors will hold over 70% market share. Small and medium vendors unable to achieve dual chip and network compatibility will gradually be eliminated.
   Ecosystem Binding: “Domestic GPU + hybrid servers” will form a close利益共同体, similar to a “Wintel” variant.

3. Competitive Landscape: Domestic Vendors Breakthrough in High-End Market
   Hybrid servers will be the core tool for domestic server vendors to break into high-end markets.
   Top vendors will leverage NVIDIA ecosystem and domestic chip compatibility to narrow the gap with international players.
   Domestic GPU vendors will deeply bind with hybrid server vendors, forming a “chip + server” collaborative competitive advantage.

4. Future Applications of Spectrum-X Architecture

5. Key Beneficiary Analysis

1. Core Suppliers

2. Other Supporting Links

Summary: NV opens up its ecosystem = recognizing that domestic cards will inevitably rise. It’s not a threat but a reassurance!
Policy strongly promotes domestic card ratios; restrictions are firm, and the need is clear! In Q2, domestic card capacity will truly ramp up; in Q3, major manufacturers will increase volume, and performance will be realized quarter by quarter—this is not just a story!
Because “hybrid deployment” is the optimal solution for China’s AI computing power industry in the next 3-5 years. It’s not waiting for domestic chips to fully mature nor fantasizing about sanctions being fully lifted, but rather, under current constraints, maximizing computing power through architectural innovation (Spectrum-X) and integration innovation (hybrid servers).
Likely, the style will shift from high to low: from ChiNext to STAR Market!
After reading this, you should understand the logic behind the explosive rise of domestic chips—whether you see the sustainability of domestic chips, their value, and which frameworks are more valuable under this context.
If you don’t understand, please like + share + comment: NVIDIA drops another bombshell: Spectrum-X architecture landing, a 140 billion market—who will take 70% of the share?

The above is just my personal trading review and reflection. Investment involves risks; trade cautiously! Plans are always outpaced by market movements. All content reflects personal thoughts and records of my understanding of the market, for personal sharing only, not investment advice. Buy and sell at your own risk!
(Research and compilation are not easy; your likes + shares + comments are our motivation. Thank you!)

Overall Market Situation: As discussed in yesterday’s video, a strong rebound will occur today, centered on technology. Today’s final validation: 4,865 stocks up, only 299 down, opposite to yesterday’s decline of 3.6%. However, money has not fully returned; the core reason is volume shrinkage.
Yesterday’s drop was 3.6%, today’s rise only 1.78%, still 2% short—about 60%. After the rebound, it will take time to recover fully. Overall, there’s a high chance of a second dip, as today’s volume shrank to 350 billion, with only 2.08 trillion in total trading volume. Such volume may not sustain; by tomorrow or the 5th, the 25-day moving average could trigger further decline. Expect a complex oscillation after the 1st. The real bottom will be around early April. The key is who will be the first to explode. Currently, the market remains centered on power sector.

Sentiment: Sentiment recovery—83 limit-ups, 76 limit-downs, 79% limit-up rate, total 6 stocks with 7 consecutive limit-ups.
Sector focus: Power, with the strongest: Power + Lithium Batteries + Computing Projects! Defensive stance, power as the new main line, others rotating around. The key is when the overall market can break out! Supporting sectors: Photovoltaics + Smart Grids + Optical Communications + Military Industry!
Power: Leading stocks Huadian LiaoNeng 7 limit-ups, followed by Liaoning Energy 2 limit-ups, and ShaoNeng still ongoing. The core leader remains YuNeng with 6 consecutive bullish days.
Lithium Batteries: Leading stock Fuxiang Pharmaceutical 1 limit-up, Rongjie 1 limit-up, heavily influenced by futures; big rise today, may continue upward or face decline again.
Computing Projects: Leading stock Yunnan Geology 2 limit-ups in 3 days, other breakout: F晶 1 limit-up, with more potential; Longfei also showing sustained growth!
Success has no shortcuts—only discipline and persistence! Wishing everyone on the path of effort, the more you strive, the luckier you get!

Today’s Highlights:

1. Lithium Batteries: Industry reports that March production plans for lithium batteries have significantly rebounded, with prices expected to rise across multiple segments, promising both volume and price increases.
2. Power Grid: State Power Investment plans to invest 200 billion RMB this year, up 17% YoY; Q1 investment target is 23 billion RMB, up 35% YoY.
3. Computing Power: National Data Bureau director states that in March, China’s daily token calls exceeded 140 trillion, a thousandfold increase over two years.

Commodity Theme Tracking

1. Live Pig Price 10.2 (-0.39%, pig cost 12, Muyuan 11.6 RMB, feed over 50%, labor 10-15%)
2. Battery Lithium Carbonate 145,000 (-1.65%, salt lake cost 30,000-40,000, Mica 60,000-90,000, Lithium Gluconate 60,000-80,000)
3. Pr Nd Oxide 72,250 (+2.45%), NdFeB N35: 169,500 (0%), light cost 35,000-40,000, MP 790,000, Australia 450,000-500,000, mining: 8,000–10,000 RMB/ton, heavy rare earths 1,300,000–1,500,000 RMB/ton.

First like, then watch—monthly income of millions! Thank you all for your support!