Novosense management is optimistic on AI server power semiconductor expansion

Overview

This report is a management discussion note on Novosense (688052.SS) by Goldman Sachs. It focuses on expansion in demand for AI server power semiconductors, domestic substitution opportunities, the company’s full product suite, and potential margin expansion through scale and product mix improvement. The report text indicates that management remains optimistic about Novosense’s growth outlook in AI server power ICs.

Core views

Management believes that increased AI infrastructure investment, higher per-GPU compute leading to higher data center energy-efficiency requirements, greater adoption of local suppliers by Chinese customers, and Novosense’s relatively complete analog and mixed-signal product portfolio will together support growth of its AI server power semiconductor business. As revenue scale expands, customer-end exposure becomes more diversified, and product specifications continue to upgrade, profitability is also expected to improve. Goldman Sachs also believes these demand signals can be read through to CR Micro, whose power semiconductors and advanced packaging-related businesses may benefit from increasing AI data center end demand.

Analysis framework

The report is mainly based on discussions with Novosense management and qualitatively summarizes the company’s AI server power semiconductor business, product coverage, client structure, localization trend, and margin drivers, while cross-validating management commentary with Goldman Sachs’ outlook on CR Micro.

Methodology notes

• Management interviewManagement call read-through

  Extracts demand, product positioning, customer structure, and margin drivers through management discussion.

  The report does not provide a detailed financial model; instead it uses management feedback to assess how AI server power semiconductor demand, domestic substitution, and product portfolio upgrades could affect Novosense and related power semiconductor companies.

• Goldman Sachs disclosure frameworkGS Factor Profile

  Compares stock attributes along Growth, Financial Returns, Multiple, and Integrated dimensions.

  The disclosure appendix explains that the GS Factor Profile is used to benchmark a stock’s key attributes against the market and industry peers, but this report does not present Novosense’s specific factor percentile results.

• M&A likelihood frameworkM&A Rank

  Measures a company’s probability of becoming an acquisition target on a scale of 1 to 3.

  The disclosure appendix states that Goldman Sachs uses an M&A framework in global coverage to assess deal probability; this report does not show a specific M&A rank for Novosense.

Asset mapping & comparison

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

• Novosense (688052.SS)

  The primary coverage target of the report; the company is a domestic analog and mixed-signal chip supplier.

  Strengths

  Its product portfolio spans sensors, signal chain, power management, power drivers, and MCU; it serves major domestic AI server power supply chain customers; and it is expected to benefit from localization and AI server demand growth in China.

  Weaknesses

  The report does not provide quantified revenue, margin, or order data, and it does not provide a formal rating or target price.

  Comparison

  Compared with single-product suppliers, management emphasizes that Novosense offers a more complete AI server power solution; the report also extrapolates demand trends to CR Micro.

  Risks

  Volatility in AI server demand, slower-than-expected domestic substitution pace, failure in product spec upgrades, intensifying competition, or weaker-than-expected margin improvement.

• CR Micro

  Industry read-through case; Goldman Sachs notes that Novosense management’s constructive commentary aligns with its views on CR Micro.

  Strengths

  As a leading Chinese power semiconductor supplier, it has entered the supply chains of leading CSPs, AI server OEMs, and power component suppliers; its OSAT business may extend to AI server power and optical-module power-driver markets through higher-density PoP packaging.

  Weaknesses

  This is not a CR Micro-specific report and does not provide a full financial forecast or valuation.

  Comparison

  CR Micro is more focused on power semiconductors and the OSAT chain, while Novosense emphasizes a broader analog and mixed-signal and power-management solution approach.

  Risks

  AI data-center end demand may underperform, price increases may be unsustainable, or supply-chain integration and packaging business expansion may fall short of expectations.

Key data

• Company code688052.SSThe report target is Novosense, a listed A-share company.
• Rating statusNCThe report labels it as NC, with disclosure defined as Not Covered.
• Company founding year2013Novosense was founded in 2013 and is a domestic analog and mixed-signal chip supplier.
• Core productsSensors, signal chain, power management IC, power devices, power drivers, MCUManagement said the company can provide end-to-end solutions covering AI server power scenarios.
• AI server power coverage scenariosUPS, AC/DC, DC/DC PSUManagement noted that the company’s solution covers multiple links in the server power supply chain.
• Goldman Sachs global stock rating coverage3,074As of 2026-04-01, Goldman Sachs global investment research covers and rates 3,074 stocks.
• Global rating distributionBuy 50%, Hold 34%, Sell 16%Distribution of Goldman Sachs global stock coverage ratings shown in the disclosure table.
• Investment banking relationship distributionBuy 65%, Hold 60%, Sell 45%The proportion of companies with investment banking relationships within each rating category in the disclosure table.
• Goldman Sachs ownership disclosureGoldman Sachs beneficially owned 1% or more of common equity: Novosense (Rmb257.00)Company-specific regulatory disclosure from the appendix.

Impact & implications

If AI server power semiconductor demand continues to expand, Novosense may benefit from its status as a local supplier, its complete power and analog product portfolio, and existing customer relationships. Scale growth and a higher mix of higher-specification products should support margin improvement; at the same time, related upstream players such as CR Micro may also benefit from AI data center-driven demand for power semiconductors and packaging.

Risks

• The report is mainly based on management discussions and lacks detailed financial forecasts, order-size data, and margin sensitivity analysis.
• AI infrastructure investment pace may fluctuate, affecting demand for AI server power semiconductors.
• The pace of localization and adoption by local customers may be slower than management expects.
• Product spec upgrades and the next generation of mixed-signal ICs may create R&D, manufacturing, and yield pressure.
• Margin improvement depends on revenue scale expansion and better product mix, and if competition intensifies or pricing weakens, the degree of improvement may be lower than expected.
• Novosense is marked as NC in the report, with no formal rating, target price, or upside assessment provided.

What to watch

• Changes in AI server power IC orders, customer onboarding, and contribution to revenue.
• The adoption pace of local semiconductor suppliers by Chinese CSPs, AI server OEMs, and power component supply chains.
• Cross-selling progress of Novosense power devices, power drivers, sensors, power management, signal chain, and MCU in AI servers.
• Volume growth of next-generation mixed-signal chips in automotive electronics and broader energy applications.
• Whether revenue scale expansion and product mix improvement translate into visible gross margin or operating margin improvement.
• Progress of CR Micro on power semiconductor price increases, AI server supply-chain penetration, and OSAT business expansion.