CITIC Construction Investment: Policies Support AI + Aerospace GTC Conference Coming Soon Rubin and Feynman Chip-Related Announcements Worth Expecting

CITIC Securities Finance APP has learned that CITIC Construction Investment released a research report stating that the government work report elevates the positioning of the AI and aerospace industries. AI has upgraded from a component of the digital economy to the core of the intelligent economy. Aerospace has expanded from “commercial space” to “aerospace” and has been upgraded to an emerging pillar industry. During a press conference, the director of the National Development and Reform Commission (NDRC) stated that by the end of the 14th Five-Year Plan, AI will form an industry scale of 10 trillion yuan, and aerospace, together with the other five emerging pillar industries, will also reach a scale of 10 trillion yuan. The Beidou industry is expected to reach 1 trillion yuan. Additionally, the NDRC will collaborate with multiple departments to establish a national-level M&A fund to facilitate exit channels for venture investments.

NVIDIA’s GTC conference is upcoming, with expectations for releases related to Rubin and Feynman chips, and attention to the increased demand for PCB and optical interconnect products driven by LPU integration.

Main viewpoints from CITIC Construction Investment:

The government work report enhances the positioning of the AI and aerospace industries. This week, the Fourth Session of the 14th National People’s Congress was held at the Great Hall of the People, where Premier Li Qiang delivered the government work report. The report expressed positive support for the development of AI and aerospace industries, proposing to “create a new form of intelligent economy,” “deepen and expand ‘Artificial Intelligence +’,” “implement large-scale intelligent computing clusters, computing and electricity collaboration, and other new infrastructure projects,” strengthen nationwide integrated computing power monitoring and scheduling, and support public cloud development. AI has been upgraded from a component of the digital economy to the core of the intelligent economy; aerospace has been elevated from “commercial space” to “aerospace” as a new emerging pillar industry, expanding industry scope and enhancing industry positioning.

By the end of the 14th Five-Year Plan, AI and aerospace are expected to reach a combined industry scale of 10 trillion yuan, with the country investing heavily in major projects under the plan. Zheng Shanjie, director of the NDRC, stated at the Fourth Session of the 14th National People’s Congress that the “Artificial Intelligence +” initiative will be deepened, and by the end of the 14th Five-Year Plan, related AI industries will grow to over 10 trillion yuan. China will focus on developing six emerging pillar industries and six future industries, including integrated circuits, aerospace, biomedicine, low-altitude economy, new energy storage, and intelligent robots. Preliminary estimates suggest that their output value will approach 6 trillion yuan by 2025, potentially doubling or more by 2030, expanding to over 10 trillion yuan. The Beidou industry will also continue to expand, with a goal to surpass 1 trillion yuan within five years. Furthermore, 109 major projects and initiatives in the “14th Five-Year Plan” will be launched to expand effective investment, including “Six Networks” (water grid, power grid, computing network, new communication network, urban underground pipelines, logistics network), as well as infrastructure like low-altitude and AI+. Investment in these areas is expected to exceed 7 trillion yuan this year. To facilitate venture capital exits, the NDRC will also work with the Ministry of Finance and the People’s Bank of China to establish a national M&A fund, guiding over 1 trillion yuan in various funds.

GTC is approaching, with focus on Rubin’s mass production schedule and Feynman architecture outlook. NVIDIA GTC 2026 is expected to be held from March 16-19 (U.S. local time). The release of Rubin’s mass production timeline, core performance, and deployment cases of the NVL144 system are anticipated to guide industry implementation. Previously, NVIDIA announced at CES 2026 and FY26Q4 earnings that Rubin would enter mass shipment in the second half of this year, with some core partners already receiving engineering samples. The highly anticipated next-generation core product, the Feynman chip, will be unveiled for the first time. It will feature the world’s first 1.6nm process technology and integrate Groq’s LPU (Language Processing Unit), which is expected to optimize chip performance and address core latency issues faced by GPU manufacturers. The LPU stacking is expected to increase PCB usage and SRAM on-chip cache demand. Besides these two chips, GTC is also expected to release designs for the orthogonal backplane of the Rubin Ultra NVL576 large-scale training rack, as well as optical interconnect products like Spectrum X Photonics and Quantum X InfiniBand CPO.

Summary: The government work report elevates the positioning of AI and aerospace industries. AI has upgraded from a component of the digital economy to the core of the intelligent economy. Aerospace has expanded from “commercial space” to “aerospace” and has been upgraded to an emerging pillar industry. The NDRC director stated that by the end of the 14th Five-Year Plan, AI will reach a scale of over 10 trillion yuan, aerospace and other five emerging pillar industries will also reach a combined scale of 10 trillion yuan, and the Beidou industry will reach 1 trillion yuan. The NDRC will collaborate with multiple departments to establish a national M&A fund to facilitate venture capital exits. GTC is upcoming, with Rubin and Feynman chip releases highly anticipated, and attention to increased PCB and optical interconnect demand driven by LPU integration.

Investment Recommendations:

1. AI: a) Focus on domestic internet giants like Alibaba and ByteDance, their CapEx investments, ecosystem players, listed model companies like Zhipu and MiniMax, domestic chip chain enterprises, ISV vendors, and infrastructure service providers mainly serving large firms and unicorns; b) Local inference gradually scaling up, benefiting service and cloud providers; c) AI infrastructure and Pre-AI revenue will be realized early. Domestic data governance lags behind overseas, requiring more pre-implementation work for AI applications; e) Recommend attention to edge AI and related industry chains.

2. Commercial Space: Focus on three main directions: rocket capacity, satellite costs, and terminal scenarios; b) Core satellite components and testing services (CAE as core software); c) Terminal, scene, and service-related targets such as space computing power and communication operation services.

3. Macroeconomic Downside Risks: The computer industry spans numerous sectors; under macroeconomic downward pressure, IT spending may fall short of expectations, directly impacting demand; 2) Accounts receivable bad debt risk: Most computer companies operate on project-based contracts, requiring acceptance before payment; longer payment cycles may increase bad debts and lead to asset impairments; 3) Intensified industry competition: Demand is relatively certain, but increased supply-side competition could alter industry structure; 4) Impact of international environment changes (currently, the U.S. continues to raise interest rates, affecting tech valuations, and market expectations of overseas recession are strengthening, which may impact companies with high overseas revenue shares, along with ongoing U.S. pressure on Chinese tech firms).