Huagang Insight AI Intelligence Bureau Exclusive In the first week of August 2026, the global AI computing market was once again ignited by a heavyweight industry news. According to the latest reliable information from the supply chain, the yield of NVIDIA's highly anticipated next-generation flagship AI chip, the GB300 series, at TSMC has achieved a critical breakthrough, potentially enabling early mass production. However, what accompanies the release of production capacity is not just another celebration of the computing concept, but a "cooling revolution" sweeping through the data center's foundation. The GB300 architecture's extreme demand for power is forcing global cloud providers to completely abandon traditional air cooling and fully transition to liquid cooling. In this infrastructure restructuring triggered by the physical limits of chips, the Hong Kong stock thermal supply chain is experiencing a rare "Davis Double Play" moment.
The "Thermodynamic Crisis" Behind the Yield Breakthrough
To understand the current market movements, one must return to the first principles of AI computing evolution. As is well known, large model parameters and computing demands are growing exponentially, and as chip manufacturing processes approach physical limits, the cost of increasing computing power is a staggering surge in power consumption. According to supply chain data obtained by the AI Intelligence Bureau, the single-card power consumption of NVIDIA's GB300 chip has significantly increased again compared to the previous generation GB200, with rack-level power consumption approaching 150 kilowatts or even higher.
This is a staggering figure for traditional data center operators. The cooling limit of traditional air cooling technology is usually around 30 kilowatts. Faced with the "heat monster" of the GB300 level, air cooling is not only inefficient but can also lead to chip throttling and shortened lifespan due to local overheating. Therefore, in the reference design for the GB300, NVIDIA has designated liquid cooling (especially cold-plate liquid cooling and immersion liquid cooling) as a "mandatory standard." This means that data centers without upgraded liquid cooling infrastructure will directly lose the qualification to deploy the next generation of AI computing clusters.
From "optional consumption" to "mandatory consumption," the industrial logic of the cooling sector underwent a fundamental and dramatic change in the second half of 2026. This is not just a technological iteration, but a mandatory restructuring of global computing infrastructure.
Hong Kong Stock Thermal Supply Chain: From Volume and Price Growth to Valuation Reshaping
Against this industrial backdrop, the thermal supply chain sector in the Hong Kong capital market has recently shown early signs of movement. As a core track continuously tracked by "Huagang Insight," we have observed that listed companies in the Hong Kong stock market involved in liquid cooling quick connectors, precision cold plate manufacturing, fluorinated cooling fluids, and CDUs (Coolant Distribution Units) are experiencing sustained capital inflows.
Why do Hong Kong-listed cooling stocks possess such high elasticity? The core lies in the reshaping of their business models:
- Explosion in Per-Unit Value: In the traditional air cooling era, cooling systems accounted for only about 3% to 5% of the server BOM (Bill of Materials) cost. In the liquid cooling era, the entire system, including cold plates, manifolds, quick connectors, CDUs, and coolants, pushes this proportion to 15% or even higher. The expansion of AI computing scale directly brings a multiplier effect to the cooling market size.
- Technical Barriers and Gross Margin Leap: Liquid cooling is not simply "water pipes + pumps." In the high-density, high-voltage environment of data centers, leak prevention, corrosion resistance, micro-channel cooling efficiency, and low-resistance design constitute extremely high engineering barriers. Especially the core quick connectors (UQD) and fluorinated fluids were previously mainly monopolized by overseas giants. In 2026, some leading companies in the Hong Kong stock market have broken through patent blockades and achieved domestic substitution. Their product gross margins are significantly higher than traditional fans and cooling fins, potentially leading to a comprehensive upward revision of corporate earnings expectations.
- Extremely High Order Visibility: As the four major North American cloud providers and domestic leading internet giants successively announce their AI Capex (Capital Expenditure) plans for the second half of 2026 to 2027, the bidding for liquid cooling equipment has entered a substantive implementation phase. Some leading Hong Kong-listed cooling companies already have order backlogs extending to the end of 2027, providing extremely strong earnings certainty.
From a valuation perspective, the market previously valued some cooling companies within the framework of "traditional hardware manufacturing" (with P/E ratios generally hovering around 10-15 times). With the rapid increase in the revenue share of liquid cooling businesses and the volume ramp-up of high-margin products, institutional funds are now re-rating them as "new technology infrastructure," with dynamic P/E ratios of 15-25 times becoming the new normal. The combination of upward earnings revisions and valuation multiple expansion is precisely the classic Double Double Play.
Independent Market Review: Expectation Gaps and Risk Dynamics
Although the industrial logic is sound, from the independent perspective of the AI Intelligence Bureau, we must still highlight the current market dynamics and risks. The rapid surge in the Hong Kong stock cooling sector over the past two weeks has partially priced in the positive expectations of GB300 mass production. In the short term, the sector faces two major expectation gap disturbances:
First, potential disruption in technological routes. The current market consensus is that cold-plate liquid cooling will dominate, but immersion cooling (especially single-phase immersion) offers superior ultimate energy efficiency. If NVIDIA or a major cloud provider significantly increases the recommended weighting for immersion cooling in white papers in the second half of the year, it could lead to a risk of technological route misstep for companies heavily invested in cold-plate technology. Investors need to closely track the POD (Reference Design Guide) directions of major manufacturers.
Second, capacity absorption and price war concerns. In the early stages of the liquid cooling industry explosion, supply shortage is the norm, and companies with first-mover advantages enjoy pricing power. However, entering the second half of 2026, as traditional cooling giants and cross-industry players gradually bring their production capacity online, signs of a price war in low-end cooling modules have already emerged. Core components that can maintain high barriers (such as UQD connectors and specialty coolants) are the key moats against declining gross margins.
Investment Strategy: Finding True Value Amid the Noise
Facing the current excitement in the Hong Kong stock cooling sector, Huagang Insight advises investors to abandon the crude "buy the basket" approach and shift to a structural strategy of "precise selection":
- Focus on Core Bottleneck Segments: Prioritize allocation to targets with deep patent portfolios in quick connectors, core CDU pump valves, and high-purity fluorinated fluids that have already entered NVIDIA's or North America's core supply chain. These segments not only have the highest technical barriers but are also difficult to replace easily.
- Focus on Domestic Substitution Elasticity: Some mid-cap companies in the Hong Kong stock market are at an inflection point transitioning from traditional thermal management to liquid cooling. Once their core products pass key customer validation and achieve mass delivery, their earnings elasticity will far exceed the broader market.
- Guard Against Geopolitical Risks: Although core cooling components are not on the strictest sanctions lists, it is still necessary to be vigilant about the "de-risking" strategies adopted by some North American customers due to supply chain security considerations. It is advisable to focus on targets with balanced domestic and export sales and ample orders from domestic computing infrastructure projects.
In 2026, the AI competition has evolved from a simple comparison of large model parameters to a comprehensive contest of underlying computing infrastructure. The breakthrough in NVIDIA GB300 yield is merely a catalyst; the real industrial drama lies in how global data centers undergo a rebirth amidst this "thermodynamic crisis." For Hong Kong stock investors, the liquid cooling sector is not only a rare window of industrial trend dividends but also a touchstone for testing the depth of investment research. The Huagang Insight AI Intelligence Bureau will continue to track the latest dynamics of the industrial chain for you, clearing the fog and revealing true value amidst the market noise.
