Value Workshop | Nvidia's New Chip Ignites Demand, Kaili International's Performance Outlook Positive

NVIDIA GTC 2026 Conference will be held from March 16 to 19 in San Jose, California, USA. The event has strongly announced the release of a “world-shocking” new chip, along with multiple “unprecedented” new products, claiming major breakthroughs in performance, design, and technology. This high-profile preview not only ignites market enthusiasm but also injects strong momentum into supply chain partners. Carley International (01050), as a NVIDIA partner, has seen increased market attention since September last year when it was included in NVIDIA’s list of qualified and recommended suppliers for server chassis and rack components.

As a NVIDIA Partner, Gaining Attention from Major Banks

Since September last year, Carley International has supported NVIDIA’s own DGX servers and data centers, with cooperation expanding to include chassis and rack products based on HGX and MGX architectures. Additionally, in January this year, the company announced the completion of chassis design development for related orders and passed customer sample verification, preparing for mass production. This means orders for AI server chassis based on NVIDIA’s DGX, HGX, and MGX architectures have been officially secured, promising immediate positive contributions to performance and a bright outlook for 2026.

Since becoming a NVIDIA partner, Carley International has attracted significant attention from major banks. For example, in late October last year, Citic Securities issued a research report covering the company for the first time with a “Buy” rating, reflecting market recognition of its business prospects. Entering 2026, interest from major banks continues to grow. Dahua Securities (Hong Kong) initiated coverage on March 6, giving a “Buy” rating and a target price of HKD 3.12, believing the company has successfully transformed into a key AI supply chain partner.

Expectations for Large Orders of MGX Server Chassis and Rack Components

However, currently, Carley International’s stock price has been affected by global stock market volatility following Iran’s attack, falling below late October levels, which ironically creates a good entry point. Notably, the positive factors since January this year have yet to be reflected in the stock price, according to Citic Securities analysis. Also, attention should be paid to the latest NVIDIA chips, which will drive the world’s top cloud service providers, OEM/ODM, and large-scale data center designs to launch new generations of server products. As a recommended supplier, Carley International is well-positioned within the global MGX ecosystem and is expected to secure substantial orders for chassis and rack components.

Growing Investment in AI Computing Centers Presents Major Business Opportunities

In fact, Carley International has long been a core chassis supplier for international server giants like HPE, Dell, and Lenovo, and is well-positioned to supply NVIDIA MGX architecture servers for these clients in the future. The scale of AI computing center investments continues to expand. For example, Google’s cloud business quarterly revenue surged 48%, with Gemini model users exceeding 750 million, supported by tens of thousands of GPUs. OpenAI plans to invest about USD 600 billion in computing power by 2030, with expected cumulative revenue surpassing USD 280 billion by then. These deployments benefit the cloud and computing industry chain, including data centers, servers, networks, power and cooling, and GPU ecosystems.

As AI computing demand explodes, orders for GPU servers and ASICs continue to grow. As a NVIDIA supply chain partner, Carley International expects strong customer demand for capacity at its factories in China and Thailand throughout 2026. Currently, its dual manufacturing bases in China and Thailand are operating at full capacity, with the Thai plant expanding to meet order growth. Factories in Dongguan and Thailand are equipped with over 1,000 six-axis robotic arms, with fully automated production lines capable of large-scale mass production and rapid delivery, ensuring efficiency and quality under large orders. A new production facility in Thailand, purchased by the company, has begun construction, with initial equipment expected to start operation by the end of 2026, providing closer-to-overseas non-China capacity.

Another growth opportunity comes from NVIDIA’s networking business. NVIDIA positions itself as “the world’s largest networking company,” with solutions (such as scale-up, scale-out, and scale across) covering data center connectivity needs. As server chassis chip density increases, connectivity demand rises accordingly, making NVIDIA’s networking division an increasingly important revenue source. This strength partly stems from a key acquisition in 2020. Market sources indicate that Carley International is supplying related products to this networking segment, which could become a new growth engine.

It is also worth noting that management has demonstrated confidence through action. On March 5, Executive Director He Weihan increased his holdings by purchasing 400,000 shares at an average price of HKD 2.3879, investing about HKD 955,200, raising his stake to 0.25%. The management’s buy-in at this price further confirms that the current stock price still significantly undervalues the company, presenting a good entry opportunity.

Nie Zhenbang (Nie Sir)

I confirm that neither I nor any connected persons have engaged in any of the following within thirty days prior to writing: trading the stocks mentioned above; or trading these stocks within three business days after the article’s publication. Additionally, I currently do not hold any of the aforementioned shares.

This is purely a personal research sharing and does not represent the stance of any third-party organization, nor is it investment advice or solicitation. Readers are advised to make independent investment decisions based on their own judgment.