4x Bull Stock Receives Bullish News! Super Track Welcomes Major Catalyst Again!

Domestic liquid-cooled server industry, good news emerges!

Today (March 17) afternoon, foreign media reported that Google, an AI giant with a market value exceeding 2.5 trillion yuan, is in talks with Chinese companies like InnoTek to purchase data center cooling systems. This negotiation highlights the global race to build AI data center infrastructure, not only increasing the supply pressure for advanced chips but also affecting key equipment in the industry chain.

In response to these rumors, Securities Times reporters contacted InnoTek’s securities office as investors. Staff responded that the “Securities Office” is currently not aware of specific client information or progress from the relevant business departments.

In the secondary market, InnoTek is a major bullish stock. Over the past year, its stock price has surged more than fourfold. Specifically, InnoTek’s stock price hit a low of 21.51 yuan per share in April last year, then continued to rebound, reaching a high of 117.30 yuan per share at the end of last year, an increase of over 445%. Since 2026, InnoTek’s stock price has remained high with oscillations, with some adjustments in recent trading days.

A Positive Rumor

According to Reuters, insiders revealed that Alphabet’s Google is in talks with InnoTek and other Chinese companies regarding the procurement of liquid cooling equipment for data centers. Previously, a Google procurement team visited China.

The report states that as the heat generated by high-density computing far exceeds the capacity of traditional air cooling systems, liquid cooling systems (which circulate water or other liquids on or around equipment surfaces for cooling) have become a critical configuration for AI data centers.

Sources say that during their visit to Beijing, Google’s team met with InnoTek. An independent source also indicated that the team plans to meet with at least one more company. The influence of Chinese suppliers in the global data center development process continues to expand.

In the secondary market, from April 9 last year to March 11 this year, the Tongdaxin liquid-cooled server index increased by over 100%. During this period, InnoTek’s stock rose over 330%, with companies like Kechuang Xinyuan, Suzhou Tianmai, and Feilong Holdings increasing over 250%.

In recent trading days, liquid-cooled server concept stocks have experienced some adjustments. On March 17, the Tongdaxin liquid-cooled server index fell more than 3%, with JinFang Energy hitting the limit down, Kangsheng Holdings down nearly 9%, Shenling Environment, Tongfei Holdings, and Zhongtian Technology dropping over 7%, and InnoTek down 3.62%.

In recent months, market doubts about the return prospects of huge investments in AI infrastructure, conflicts in the Middle East threatening the semiconductor supply chain, and shortages of storage chips needed for NVIDIA products have persisted. These factors have kept Jensen Huang’s optimistic earnings forecasts from convincing Wall Street.

On Monday, NVIDIA CEO Jensen Huang stated that driven by the deployment of tools like Anthropic’s Claude Code and OpenAI’s OpenClaw, revenue in the AI chip sector is expected to reach at least $1 trillion within the next two years.

NVIDIA’s revenue forecast far exceeds Wall Street consensus, signaling that the company believes the AI boom will continue to heat up. On Monday, NVIDIA’s stock rose 1.65%. Before the U.S. stock market opened on Tuesday, NVIDIA’s stock fluctuated slightly, currently up 0.11%.

Liquid Cooling Market Potential

JPMorgan reports that driven by demand from NVIDIA and cloud service providers deploying custom AI chips, the global AI server liquid cooling system market is expected to surge from last year’s $8.9 billion to over $17 billion by 2026.

According to IDC research, the global AI industry is projected to grow at a compound annual growth rate (CAGR) of 42% from 2022 to 2032, reaching $1.3 trillion by 2032.

Yongxing Securities pointed out that with the rapid development of AI and strong computing power demand, liquid-cooled servers are becoming a “necessity” hardware. Meanwhile, chip and server performance improvements are causing power consumption and rack power density to increase rapidly. According to ASHRAE recommendations, when a chip’s TDP exceeds 300W and rack power density exceeds 40kW, liquid cooling is recommended. Chinese government departments have issued policies encouraging enterprises to adopt new technologies, processes, and equipment to reduce data center energy consumption. Analysts from China Business Industry Research Institute forecast that by 2025, China’s liquid-cooled server market will reach 29.4 billion yuan, and by 2027, exceed 40 billion yuan.

Galaxy Securities stated that with the explosion of AIGC, high-power chips’ heat flux density has increased significantly, and traditional air cooling approaches physical limits, making liquid cooling the preferred method for high-power chip cooling. They recommend three main investment opportunities: first, capitalize on NVIDIA’s Blackwell GB300 chip, next-generation Vera Rubin chip, and new high-power smartphones; second, invest in high-power data centers adopting liquid cooling; third, explore opportunities in cooling for new energy vehicle batteries and energy storage systems.

Reuters pointed out that at recent industry exhibitions, InnoTek showcased a cooling liquid distribution unit (CDU) built to Google specifications, a key component in liquid cooling systems that delivers coolant to server racks.

Goldman Sachs, after a recent analyst meeting with the company, issued a report stating that InnoTek expects quarterly growth in its liquid cooling business this year, with potential orders including Google’s fifth-generation CDU and other components. The company also plans to expand capacity at its Guangdong factory and continue developing manufacturing bases in Thailand and the U.S.

The liquid cooling market is highly segmented, with many suppliers offering different system components. Benefiting from strong domestic demand, Chinese suppliers are gradually gaining market share due to their capacity and cost advantages, with major players including Lingyi Zhizao, Feilong Holdings, and server manufacturers like Lenovo.

Other Chinese component suppliers benefiting from AI data center development include Zhongji Xuchuang and Guangxun Technology, which produce optical modules. Chinese manufacturers also dominate the printed circuit board market, with companies like Shenghong Technology already serving clients like NVIDIA and Google.

(Source: Securities Times)