The new energy sector has made great efforts, and lithium batteries and energy storage have become the "most beautiful players" in the market.

Among them, A-shares went crazy, with Jiawei New Energy, Actis, Tianji, Polyfluoro, Tianci Materials and other stocks hitting their daily limits; Yiwei Lithium, Tianqi Lithium, and Ganfeng Lithium all surged. Hong Kong stocks Ganfeng Lithium and Tianqi Lithium also surged by more than 8%.

"Ningwang" broke out. As of midday, it rose nearly 14% to 179.97 yuan, with a total market value of 791.695 billion yuan.

lithium battery

In the past two years, new energy has been in a downward trend. Since the beginning of the year, the lithium battery sector has stepped out of a deep V, falling continuously throughout January. It bottomed out in early February and has now risen by more than 20%.

lithium battery

Looking back at today's strong surge in lithium batteries, it is mainly affected by several favorable factors: first, foreign investment was dominated by the Ningde era over the weekend, and second, the AI ​​big guys in the technology circle gave heavy "guidance" that the end of AI is photovoltaics and energy storage. .

AI energy storage story

After computing power, AI is now igniting electricity and energy storage in A-shares.

As the "darling" of the technology circle, AI is the hottest track nowadays; as the "leaders" of the industry, Nvidia and OpenAI are the focus of market attention for every move they make.

No, the No. 1 figures of the two companies have recently issued heavy "guidance" linking AI to photovoltaics and energy storage.

Recently, Nvidia founder Huang Jenxun and OpenAI founder Altman both said when talking about AI that the end of AI is photovoltaics and energy storage.

It is reported that Nvidia CEO Huang Renxun pointed out in a public speech that the future development of AI is closely linked to state-of-the-art energy storage.

"The end of AI is photovoltaics and energy storage! We can't just think about computing power. If we only think about computers, we need to burn 14 earths' energy."

Coincidentally, Altman, the founder of OpenAI, also expressed similar views during a public appearance in Davos. He said, "Future AI technology depends on energy, and we need more photovoltaics and energy storage."

Tesla CEO Musk previously predicted that the year will change from a "silicon shortage" to a "power shortage" within two years, which may hinder the development of AI. Musk has repeatedly stressed the urgency of solving the growing demand for electricity.

According to foreign media reports, ChatGPT may consume more than 500,000 kilowatt hours of electricity every day to respond to approximately 200 million requests from users. The average American household uses about 29 kilowatt hours of electricity every day, and ChatGPT’s daily electricity consumption is more than 17,000 times that of household electricity.

If generative AI is further adopted, the power consumption may be even greater.

Alex de Vries, a data scientist at Dutch National Bank, estimated in a paper that by 2027, the entire artificial intelligence industry will consume 85 to 134 terawatt hours (1 terawatt hour = 1 billion kilowatt hours) of electricity per year.

"AI is very energy-intensive. Each AI server already uses as much power as a dozen British homes combined. So the numbers add up really quickly."

If a large tech company like Google integrated generative AI technology into every search, it could result in approximately 29 billion kilowatt hours of electricity consumption per year, which is more than the annual energy consumption of many countries.

It is undeniable that as artificial intelligence continues to develop, addressing its energy consumption is critical to ensuring a sustainable future.

Foreign investors are bullish: Overweight!

In addition to the forward-looking guidance of AI tycoons, foreign investment is also an important factor in today's explosion of new energy.

Morgan Stanley’s latest statement is that as the price war comes to an end, CATL is preparing to improve cost efficiency through a new generation of large-scale production lines and expand its advantage in return on net assets, seeing multiple inflection points in CATL’s fundamentals. , raised the company's rating to overweight and selected it as the industry's top choice.

Recently, Morgan Stanley released its latest report, raising CATL's rating to "overweight" and raising the company's target price by 14% to RMB 210.

As the price war comes to an end, CATL is preparing to improve cost efficiency through a new generation of large-scale production lines and expand its advantage in return on equity. Seeing multiple inflection points in CATL's fundamentals, the company's rating is raised to overweight , and selected as the industry's first choice.

The agency's analysis pointed out that CATL, as the world's leading battery manufacturer, has benefited from the rapid growth of the electric vehicle market and rising battery demand.

It is reported that CATL, the world's leader in power batteries, will also join forces with BAIC Group and Xiaomi Motors to invest in the construction of a power battery factory in Beijing.

Looking at the global electric vehicle battery market share, data released by South Korean market research company SNE Research shows that in January 2024, the total global electric vehicle (EV) battery consumption was 51.5 GWh, an increase of 60.6% from 32.1 GWh in the same month last year. .

CATL’s battery installed capacity in January was 20.5GWh, an increase of 88.1% from 10.9GWh in the same month last year. The power battery giant continues to rank first in the world with a 39.7% share and remains the only battery supplier in the world with a market share of more than 30%.

lithium battery

CICC pointed out that the current valuation of the lithium battery sector has fully reflected the market's pessimistic expectations for demand and industrial chain profitability, and positive factors are gathering. The strong new energy vehicle terminal sales data in January 2024 verified the resilience of terminal demand. The price of lithium carbonate has also stabilized recently. With the launch of new cars and orders expected to pick up quickly after the holidays, the probability of replenishment in the industrial chain is gradually increasing.

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