Everbright Securities: AI leads the wave of PCB capital expenditure and focuses on leading PCB equipment & consumables vendors

The Zhitong Finance App learned that Everbright Securities released a research report saying that with the expansion of AI computing power demand, the demand for AI servers has risen sharply, the supply of high-end PCB products in the industry is tight, and leading domestic PCB manufacturers are increasing their capital expenditure efforts, directly driving demand for PCB equipment. Focus on high-value equipment in PCB manufacturing, including drilling, exposure, electroplating, inspection, drilling pins, etc. It is worth noting that Nvidia (NVDA.US) plans to use M9 grade copper clad plates for CPX and Midplane PCBs in the Rubin architecture released in the second half of 2026, which will significantly increase the difficulty and cost of PCB processing. It is expected that demand for AI PCB drills will increase several times in the future, and high-end PCB drills will rise in volume, price, and profit.

The main views of Everbright Securities are as follows:

The development of AI stimulates the demand for high-end PCBs, and the demand for PCB equipment has increased significantly

According to Prismark's forecast, the global PCB special equipment market will reach 10.8 billion US dollars in 2029, with a CAGR of 8.7%; in 2024, key equipment with a relatively large market size includes drilling (21%), exposure (17%), inspection (15%), electroplating (7%), etc. At the same time, drills, as the core consumables for PCB mechanical drilling, have also become the focus of PCB manufacturers' demand.

In the field of drilling equipment, demand for mechanical drilling equipment and laser drilling equipment coexists. The CO2 laser drilling machine market is mainly occupied by leading overseas companies. Domestic equipment manufacturers are expected to accept domestic replacement demand for high-end mechanical drilling equipment, and the development of ultra-fast laser drilling equipment in the market is accelerating.

In the field of exposure equipment, LDI equipment is a key field of competition, and the leading market share in the industry is concentrated. There are various technical routes in the field of electroplating equipment, and domestic manufacturers have an advantage in the field of vertical continuous electroplating equipment. Competition in the field of testing is fierce, and the industry is moving towards 3D and online development. In the field of drills, the demand for PCB micro drills with a diameter of 0.2 mm or less is expected to increase dramatically.

The PCB solution under Nvidia's Rubin architecture may reshape industry needs and patterns in the field of drilling equipment and drilling pins

Nvidia plans to use M9 grade copper clad plates for CPX and Midplane PCBs in the Rubin architecture released in the second half of 2026, which will significantly increase the difficulty and cost of PCB processing. Demand for AI PCB drills is expected to increase several times in the future, and high-end PCB drills will rise in volume, price, and profit. In the short term, tungsten-cobalt alloy coated drills are still the mainstream products for processing M9 materials. At the same time, in order to guarantee the quality of drilling processing, PCB manufacturers may increase the demand for ultra-fast laser drills in domestic production. Merchants seize boreholes The equipment market provided an opportunity to take the lead later.

Investment advice

Demand for AI computing power is growing strongly, leading the wave of capital expenditure of PCB manufacturers. Orders from domestic PCB equipment vendors and consumables are expected to continue to grow. We are optimistic that the AI industry chain will continue to prosper. It is recommended to focus on future market segments in the field of PCB equipment and consumables where the market size is growing rapidly and the market size is large, including the fields of drilling, drilling, exposure, inspection, and electroplating. It is recommended to focus on the investment opportunities of leading domestic PCB equipment and consumables suppliers, in order of recommendation:

1) Dingtai Hi-Tech (301377.SZ): A leading supplier of global PCB drill bits, AIPCB demand has driven the company's drill bit volume and price profit to rise sharply, giving the first coverage a “gain” rating; 2) Dazu CNC (301200.SZ): leading global PCB equipment supplier, leading the global market share of drilling equipment, and the first coverage gave a “gain” rating. 3) Keger Precision Machine (301338.SZ): The world's leading solder paste printing equipment, fully benefiting from the high-precision assembly requirements of AI servers, was covered for the first time to give it an “gain” rating. 4) Dongwei Technology (688700.SH): A leading domestic electroplating equipment company, leading the market share of vertical continuous electroplating equipment and maintaining an “gain” rating. 5) Tianzhun Technology (688003.SH): A leading enterprise in industrial vision equipment. The PCB equipment business is about to expand, and for the first time, it has received an “increase” rating.

risk analysis

Risk of macroeconomic fluctuations, risk of industry technology iteration falling short of expectations, risk of fluctuating computing power demand, risk of increased industry competition, risk of raw materials and supply chain stability, etc.