Huatai Securities forecasts a significant growth phase for the switching chip market starting in 2026, driven by advancements in AI technology. Switching chips, crucial for data center interconnects, are expected to see increased demand as AI clusters exceeding 10,000 GPUs require more robust network systems. This demand is anticipated to boost both the volume and price of Scale-out switching chips. The report highlights the potential of the hyper-node architecture to enhance domestic computing power, necessitating a higher ratio of switching chips compared to traditional architectures. Huatai Securities projects the domestic switching chip market could reach RMB 24.2 billion by 2028, with a compound annual growth rate of 96% from 2026 to 2028. The report advises monitoring both international leaders and domestic firms with advanced chip technologies.
Huatai Securities Predicts AI-Driven Surge in Switching Chip Market by 2026
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