AI server power semiconductor demand is expanding, and Novosense is expected to benefit from localization and power solution portfolio upgrades

Overview

This report is a management call transcript by Goldman Sachs on Novosense (688052.SS), focusing on the company’s AI server power semiconductor business, localization trend, product-portfolio coverage, and margin-improvement path. Management believes that increasing AI infrastructure spend, power-efficiency requirements from higher GPU compute, more domestic customers adopting domestic suppliers, and Novosense’s relatively complete analog and mixed-signal chip capabilities together support future revenue growth.

Core views

The core view is that Novosense’s AI server power semiconductors are in an expansion stage, and the company can enter the server power supply chain with a full product portfolio; expansion in revenue scale, a more balanced endpoint market mix, and product specification upgrades are expected to improve profitability. The report also extends this positive view to CR Micro, arguing that rising AI data-center demand likewise benefits China’s power semiconductor and OSAT-related supply chains.

Analysis framework

The report is primarily a qualitative analysis based on management call information, combined with assessment of industry demand, customer structure, localization trends, and product portfolio. It also uses read-across with CR Micro’s business positioning to evaluate potential effects of AI server power demand on the Chinese power semiconductor supply chain. The disclosure appendix notes that Goldman Sachs uses its internal GS Factor Profile, M&A Rank, and Quantum frameworks as research context.

Methodology notes

• Research methodManagement call

  Obtain business trends, customer demand, and margin improvement paths through management interviews.

  The main incremental information in this report comes from communication with Novosense management, with emphasis on AI server power IC demand, localization, domestic customer coverage, and product upgrades.

• Cross-sectional mappingRead-across

  Extrapolate Novosense signals to same-chain or adjacent-company demand judgments.

  The report maps Novosense management’s positive stance on AI server power demand to CR Micro, stating that AI infrastructure trends also support China’s power semiconductors and advanced packaging businesses.

• Factor frameworkGS Factor Profile

  Compare stock characteristics across Growth, Financial Returns, Multiple, and Integrated dimensions.

  The disclosure appendix states this framework provides investment context using indicators such as sales growth, EBITDA growth, EPS growth, ROE, ROCE, and valuation multiples to build percentile comparisons.

• M&A frameworkM&A Rank

  Assess probability of being an acquisition target on a 1-to-3 score.

  The disclosure appendix notes that Goldman Sachs uses qualitative and quantitative factors for merger probability in global coverage, but this report does not provide a specific M&A Rank for Novosense.

Asset mapping & comparison

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

• Novosense (纳芯微, 688052.SS)

  Primary subject of the report, providing analog and mixed-signal chips plus AI server power-related solutions.

  Strengths

  Covers power devices, power drivers, sensors, power management, signal chain, and MCU, and already serves major domestic AI server power component suppliers.

  Weaknesses

  The report does not provide quantified orders, revenue mix, margin forecasts, or a formal profitability model; Goldman Sachs marks it as Not Covered.

  Comparison

  Compared with single-device suppliers, Novosense’s advantage is more complete power-chain solution coverage, but the report does not include valuation or market-share comparisons versus peers.

  Risks

  AI server demand may disappoint, localization may proceed slower than expected, product specification upgrades may miss expectations, competition may intensify, and margin improvement may fall short.

• CR Micro

  Read-across peer; the report says rising AI server power demand is consistent with a more constructive Goldman Sachs view on CR Micro.

  Strengths

  As a leading domestic power semiconductor supplier, it has entered the chain for leading CSPs, AI server OEMs, and power component suppliers; its OSAT business can extend via high-density PoP packaging into AI server power and optical-module power driver markets.

  Weaknesses

  This report is only a cross-company read-across and does not provide CR Micro’s full financial forecast or valuation analysis.

  Comparison

  CR Micro is more exposed on power semiconductors and OSAT supply-chain benefits, while Novosense emphasizes analog/mixed-signal capabilities and end-to-end server power solutions.

  Risks

  Uncertainty remains around AI data-center buildout pace, durability of pricing expansion, supply-chain competition, and packaging technology ramp speed.

• AI data-center power semiconductor supply chain

  Core industry-chain theme, with demand driven by AI infrastructure spending, higher GPU compute, and rising data-center energy-efficiency requirements.

  Strengths

  Demand drivers are clear and span power devices, drivers, power management, sensors, signal chain, and packaging.

  Weaknesses

  The report is largely qualitative and lacks market-size, penetration, and order validation data.

  Comparison

  China’s domestic supply chain may receive relatively larger incremental opportunities due to the localization trend.

  Risks

  Capex volatility, customer qualification cycles, overseas constraints, technology iteration, and supply expansion may affect industry conditions.

Key data

• Coverage statusNot Covered (NC)The report title marks Novosense as NC, and the disclosure states that Not Covered means Goldman Sachs does not cover this company.
• Ticker688052.SSThe report focuses on Novosense’s A-share listing.
• ScopeSensors, signal chain, power management IC, power devices, power drivers, MCU, etc.Management said the company can provide a relatively complete AI server power solution and cover UPS, AC/DC, and DC/DC PSU scenarios.
• Disclosure priceRmb257.00Novosense is referenced at Rmb257.00 in the company-specific disclosure; the report does not provide a target price or expected upside.
• Rating distribution disclosureGlobal coverage: Buy 50%, Hold 34%, Sell 16%; investment-banking relationship: Buy 65%, Hold 60%, Sell 45%From Goldman Sachs global stock coverage rating distribution disclosure and not a company-specific rating for Novosense.

Impact & implications

If AI server buildout continues to expand, demand for power semiconductors, drivers, sensors, power management, and high-density packaging in the server power chain may benefit simultaneously. For Novosense, the key impact is the depth of domestic-chain penetration, completeness of product portfolio, and scale effects; for comparable companies such as CR Micro, AI data-center demand may further strengthen power semiconductor and OSAT demand cycles.

Risks

• The report is a management call transcript and its conclusions are mainly qualitative, with no detailed financial model or order data.
• Novosense is Not Covered (NC), and Goldman Sachs did not provide a formal investment rating, target price, or earnings forecast.
• If AI server infrastructure investment slows, power semiconductor demand and revenue growth may be lower than management expectations.
• The pace of localization substitution, customer qualification timing, and changes in competitive dynamics may affect the level of benefit the company actually captures.
• Scale effects and product-structure optimization may not fully offset pressure from pricing competition, R&D spending, and manufacturing costs.

What to watch

• Novosense’s AI server power-related revenue mix, order growth, and major-customer onboarding progress.
• Mass production progress of power devices, power drivers, and power management products in UPS, AC/DC, and DC/DC PSU scenarios.
• Capex and degree of supply-chain localization among domestic AI server OEMs, CSPs, and power component suppliers.
• Product launches, qualification progress, and revenue contribution of next-generation analog ICs in automotive electronics and broader energy applications.
• Whether margins actually improve as revenue scales, end markets become more diversified, and product specifications continue to upgrade.