Goldman Sachs China AIDC+Power Virtual Corporate Day: Clean Technology Benefits from AIDC Power Demand, Overseas Demand, and Cost Reductions from New Technology

Overview

This report summarizes the key takeaways from Goldman Sachs’ AIDC + Power Supply virtual corporate day held from May 6-8, 2026, covering 11 clean technology companies. The discussions focused on China AIDC applications, overseas opportunities, and future technology development. The core view is that AIDC power-demand could become a new solution to renewable power absorption pressure, overseas demand for high-efficiency modules and distributed storage continues to improve, and technology-driven cost declines provide medium- to long-term support for solar, nuclear power, and storage.

Core views

Goldman Sachs believes that first-tier solar module companies are likely to see an operating profit inflection in 2H26E. The main logic includes: improved renewable power absorption through faster AIDC adoption and storage installations, which raises project IRR; higher overseas share of high-efficiency modules delivering higher ASPs and an operating margin premium of 3-10 percentage points; and R&D-driven cost declines. For distributed storage, Australian subsidies and high power prices in Southeast Asia are becoming additional demand drivers. On nuclear power, China AIDC currently uses nuclear power indirectly through the grid, while long-term SMR commercialization may create more off-grid application space.

Analysis framework

The report is organized as a corporate-day call summary, grouping management feedback from participating companies into the three value chains of solar, distributed storage, and nuclear power, and distilling investment implications across four dimensions: AIDC demand, overseas markets, technology evolution, and operating-profit inflection.

Methodology notes

• Event researchGoldman Sachs 2026 AIDC + Power Supply Virtual Corporate Day

  Management feedback from the company day

  Through management exchanges with 11 clean technology companies, it consolidates each subindustry’s views on AIDC applications, overseas demand, and technology trends.

• Equity comparison frameworkGS Factor Profile

  Growth, financial returns, valuation multiples, and composite percentile

  The Goldman factor framework uses analyst forecasts to rank stocks on growth, financial return, and valuation multiples, and calculates a composite percentile for investment-context comparison.

• M&A evaluationM&A Rank

  Probability score of being a potential acquisition target

  Goldman assesses the probability of covered companies becoming acquisition targets on a 1 to 3 scale, with 1 as high probability, 2 as medium probability, and 3 as low probability.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• LONGi Green Energy Technology Co.

  The report explicitly reiterates a Buy rating

  Strengths

  It benefits from improved renewable power absorption driven by AIDC, increased share of high-efficiency modules overseas, and R&D cost reductions.

  Weaknesses

  The report does not disclose company-specific detailed financial forecasts or current share price.

  Comparison

  It is classified as a beneficiary among first-tier solar module manufacturers.

  Risks

  If overseas demand, module pricing, or cost declines fall short of expectations, the operating profit inflection could be delayed.

• Solar modules

  Core beneficiary segment

  Strengths

  Overseas high-efficiency modules have higher ASPs and a 3-10 percentage-point operating margin premium, while perovskite technology offers medium- to long-term incremental upside.

  Weaknesses

  The domestic market still relies on cost declines and absorption improvements to reach breakeven.

  Comparison

  Compared with distributed storage, solar modules are more directly tied to the report’s Buy rating and the 2H26E profit inflection thesis.

  Risks

  Overseas shipment share, scale-up of technologies, module pricing, and demand recovery remain uncertain.

• Distributed storage

  Overseas demand improvement theme

  Strengths

  Australian subsidies and high electricity prices in Southeast Asia are driving demand, with Goodwe guiding to strong 2Q26 storage shipment growth.

  Weaknesses

  Demand is highly sensitive to subsidies, power prices, and channel inventories.

  Comparison

  Compared with solar modules, distributed storage’s catalysts come more from the spread of demand across overseas regions.

  Risks

  Rising lithium battery prices, subsidy changes, or a slowdown in regional demand could weigh on growth.

• Nuclear power and SMR

  Long-term power-supply theme for AIDC

  Strengths

  A stable Chinese grid enables AIDC to use nuclear power indirectly, and SMR may in the long run be closer to AIDC projects and open off-grid use cases.

  Weaknesses

  Current Chinese AIDC nuclear use is mainly indirect, and overseas SMR orders remain limited.

  Comparison

  Compared with solar and storage, the nuclear theme is more long-term and slower in commercialization pace.

  Risks

  The commercialization of SMR, regulatory approvals, cost declines, and execution of overseas orders carry significant uncertainty.

Key data

• Corporate day timing and coverageMay 6-8, 2026; 11 clean technology companiesDiscussions focused on China AIDC applications, overseas opportunities, and future technology development.
• Typical off-grid new-energy AIDC configuration60% wind, 40% solar PV, 4-hour user-side storageHuadian noted this configuration helps improve the IRR of renewable projects and lower end-user electricity costs.
• Huadian direct AIDC project targetAt least 5 GW over the next five yearsUsed to ease renewable power offtake issues.
• Assumed nuclear generation share10% in 2035E, 5% in 2025China AIDC currently uses nuclear power mainly indirectly through the grid.
• Solar module profitability inflectionMost solar module companies target positive operating profit in 3Q26Drivers include a higher overseas share of high-efficiency modules and domestic cost declines.
• Overseas high-efficiency module margin premium3-10 percentage pointsHigher than domestic standard modules.
• Domestic module cost-reduction assumptionRmb0.03/WResulting from the adoption of lower-cost metal technologies.
• Drinda overseas shipment share70% in 1Q26, up from 40% in 4Q25Reflects a rapid increase in the share of overseas shipments.
• Perovskite order and capacity cluesSZSC expects Rmb500-600mn of perovskite orders in 2026E; Jinko A targets GW-scale mass production lines in 2029ESolar companies are investing more actively in emerging perovskite technology.
• Australia residential storage subsidyCovers 30% of system costsThe Cheaper Home Batteries Program is driving distributed storage demand in Australia.
• Goodwe 2Q26 storage shipment guidanceStorage inverter shipments expected to double sequentially; storage battery shipments expected to grow 50%-100% sequentiallyAustralia, Europe, and Southeast Asia are the main regions contributing to demand.

Impact & implications

The investment implication is generally positive, especially for first-tier solar module companies and distributed energy storage companies with strong overseas channels and cost-reduction capability. AIDC demand may improve renewable power absorption in China and lift project returns, while overseas markets can provide a higher profit profile. Perovskite and high-efficiency module technologies are expected to lengthen the industry growth curve. Nuclear power and SMR remain more long-term themes, with current orders and commercialization still limited.

Risks

• AIDC electricity-demand growth and renewable power absorption improvements fail to materialize as expected.
• Overseas demand, ASP, or margin premium for high-efficiency modules falls short of management guidance.
• Commercialization of perovskite, SMR, fast-neutron reactors, fusion, and alternative battery materials is delayed.
• Australian subsidy changes, Southeast Asian electricity prices, or European inventory cycle shifts cause volatility in distributed storage demand.
• Rising lithium battery or key-material prices compress margins in storage products.
• Some report views come from management discussions at the corporate day and may not represent all details of Goldman Sachs’ official fundamental forecasts.

What to watch

• Whether China AIDC projects actually improve renewable absorption rates and raise project IRR.
• The execution pace of Huadian’s target of at least 5GW in direct AIDC projects over the next five years.
• Whether solar module peers achieve the 3Q26 operating profit turnaround.
• Whether the overseas share of high-efficiency module shipments and the 3-10 percentage-point margin premium can be sustained.
• Progress in orders, construction, and scale-up of perovskite projects at SZSC, Drinda, and Jinko A from 2026E to 2029E.
• Whether Goodwe delivers the 2Q26 guidance for storage inverter and storage battery shipments.
• Progress on SMR overseas orders, feedback from the Linglong One demonstration project, and cooperation progress between China AIDC and nuclear power enterprises.