The Development Prospects and Investment Opportunities of AI Ether Network

With the rapid development of artificial intelligence technology, network connectivity solutions are undergoing transformation. Ethernet, with its openness and low cost advantages, is expected to become the mainstream connectivity solution in the AI era.

Ether Network vs InfiniBand Network

• Advantages of Ethernet: high compatibility, low cost, good flexibility
• InfiniBand advantages: excellent performance, high bandwidth, low latency

In the long run, Ether is expected to replace InfiniBand in the AI field:

• Ether network has better scalability and openness for large-scale clusters.
• AI requires a large amount of computing power, and Ethernet can better support large-scale clusters.
• The cost advantage is obvious, which is beneficial for the expansion of AI infrastructure.

AI Ether Development Trends

Currently forming two major camps:

1. Super Ether Alliance ( UEC ): AMD, Arista, Broadcom, Cisco, etc.
2. NVIDIA Spectrum-X Platform

The competition in the future will mainly unfold between these two major camps. Regardless of which solution becomes mainstream, it will promote the expansion of the switch market.

Investment Opportunities

1. Switch industry chain: chips, manufacturing, and brand vendors are expected to benefit.
2. Optical Module: The LPO solution may become the best choice for AI Ethernet, with leading companies like Zhongji Xuchuang and Xinyi Sheng having more advantages.
3. Cloud Computing: AI-driven cloud service spending is rapidly increasing, with global public cloud spending expected to exceed $675 billion in 2024.
4. AI Phones: 16% share in 2024, reaching 54% by 2028, with companies like Apple, Google, and Samsung positioning themselves.

Overall, the development of AI Ether will bring new growth opportunities to various fields such as communication devices, cloud computing, and mobile terminals. Investors should focus on leading companies in the relevant industry chain.