Thematic Stock Exposures

14 March 2024 | 2:58PM GMT
Thematic Stock Exposures
The data center ecosystem
In this special edition of Thematic Stock Exposures, we turn our focus to companies Aleksandra Gjorgievska
+44(20)7552-5797 |
exposed to global growth in data centers. The generative AI boom has accelerated aleksandra.gjorgievska@gs.com
Goldman Sachs International
capital spending by cloud hyperscalers and spurred the development of new data
Brian Rooney
center technologies from specialized semiconductors to optimized networking and +1(212)902-3935 | brian.rooney@gs.com
Goldman Sachs & Co. LLC
cooling. In consultation with our equity analysts, we present an ecosystem of GS
Research-covered stocks with exposure to the theme. This is far from an exhaustive
list, and we encourage you to see the dedicated Data centers page for more
coverage.
For the exclusive use of Goldman Sachs Clients
Note: While this report will discuss specific stocks in relation to this theme, it does
not recommend any individual security or investment strategy, and should not be
relied upon in making investment decisions with respect to individual companies or
securities. All of the views relating to specific stocks, including the ratings identified
below, are those of the analysts covering those stocks and are included solely for
your convenience. Please click on the links below to read the research associated
with the individual stocks.
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Investors should consider this report as only a single factor in making their investment decision. For Reg AC
certification and other important disclosures, see the Disclosure Appendix, or go to
www.gs.com/research/hedge.html.
The Ecosystem GS-Research covered stocks exposed to data centers
COMPUTE AND MEMORY

Nvidia Rising wallet share in data center computing with new products in pipeline
Advanced Micro Devices Data center segment growth matters most as accelerated computing clears way for market share gains
ARM Holdings Growing data center contribution to royalty revenue growth supports higher earnings and valuation
Intel Wallet share losses in data center compute outweigh PC market share lead and product roadmap progress
TSMC Advanced packaging demand and AI revenue contribution upgrade add to strong growth outlook
SK Hynix Established HBM leader riding advantage in AI memory chips with margin upside from new products
Micron Technology Underappreciated AI beneficiary where HBM share gains from a low base should help drive positive EPS revisions
Samsung Electronics Cyclical recovery in memory and HBM growth boost profitability outlook
Ibiden Highest-quality ABF substrate supplier set to ride AI data center growth
Unimicron Technology Demand for high-end ABF substrates clears path for revenue and margin boost
Chipmaking tech: Applied Materials; Lam Research; KLA; ASML; BESI; ASMI; ASMPT; Tokyo Electron; DISCO
NETWORKING AND CONNECTIVITY

Broadcom Data center networking and custom compute offload boost AI chip franchise, adding to strong software margins
Marvell Technology Strength in data center connectivity with fast-growing custom compute franchise adding to AI revenue
Credo Technology Group Broadening US hyperscaler customer base adds momentum for data center networking disruptor
Arista Networks Cloud data center switching leader with best-in-class platform set to capitalize on AI networking expansion
Cisco Systems AI networking progress encouraging but corporate spending slowdown weighs on outlook
Hewlett Packard Enterprise Juniper acquisition strengthens AI capabilities and boosts TAM in data center networking
Amphenol Leading connectors company well-positioned to capitalize on fast-growing AI product opportunities
TE Connectivity Higher dollar content for AI applications adds to long-term revenue growth trajectory
Innolight AI exposure supports strong growth outlook for China's leading optical transceiver supplier
Eoptolink 400G/800G ramp in AI infrastructure to drive robust profit growth in 2024 and 2025
SERVERS, STORAGE AND SUPPORT

Dell Technologies AI servers emerging as key driver of long-term growth and earnings power
Super Micro Computer R&D-led data center infrastructure player with key chipmaker partnerships trading at a premium
Flex Rise of hyperscale data centers in revenue mix adding to earnings growth
Jabil Circuit Increasing % of revenue from data centers with focus on profits/FCF contributing to more durable margins/EPS
Seagate Technology Encouraging progress on HAMR commercialization at US hyperscalers
Foxconn Industrial Internet Broad AI supply chain exposure and shift to cloud service customers driving margin expansion
Elite Material AI-driven server upgrades add to revenue opportunity for Nvidia copper clad laminate supplier
Taiwan Union Technology High-end copper clad laminate share gainer capitalizing on higher ASPs for low-loss products
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GCE Global PCB supplier with key supply chain relationships riding shift to higher-gen switches
Asia AI servers: Delta Electronics; King Slide; Lenovo; Wiwynn; Gigabyte; Inventec; Pegatron; Quanta; Wistron; Asus; Compal
INFRASTRUCTURE
Vertiv Holdings Strong orders and backlog fuel long-term revenue growth trajectory
nVENT Electric A mega-projects beneficiary with exposure to the liquid cooling and the electrical needs of data centers
Eaton Data center construction adds to attractive exposure for US re-industrialization winner
Shenzhen Envicool Technology China liquid cooling player with large order wins
Nidec Growing focus on revenue opportunity from water cooling for data centers
MYR Group North America's second-largest electrical contractor poised to gain from data center spending
Europe industrials: ABB; Siemens; Legrand; Schneider Electric

Data center operators: Macquarie Technology Group; NEXTDC; GDS Holdings; VNET Group
Real estate cos: Prologis; SEGRO; Tritax Big Box; Merlin Properties Socimi; CTP
POWER
Southern Majority of emerging load in Georgia is linked to data centers
Sempra Texas growth demonstrates opportunity from data centers, electrification
American Electric Power Load demand driven by data centers in Ohio, Texas, Indiana
Dominion Energy Exposure to data center-driven demand in Virginia
E.ON Europe grid modernization supported by data center demand to drive higher capex and support earnings
Iberdrola Attractive power grid exposure helps limit earnings volatility
*Please note this is not an exhaustive list. For more information about
Europe utilities: EDP Renovaveis, Fortum
the stocks, including the GS Research ratings, see inside the report.
Goldman Sachs Thematic Stock Exposures
Designers and producers of specialized chips and related materials needed to power
data centers running compute-intensive applications
Nvidia | NVDA | Buy, on CL
Rising wallet share in data center computing with new products in pipeline
Nvidia has more ground to gain selling chips tailored to run the data centers where
large-scale AI models are trained, our analysts say. They predict the world’s leading
maker of GPUs will follow the >3x yoy increase in data center revenue in FY2024 with
another >2x yoy rise in FY2025 as customer wins in industries including healthcare,
financial services and autos add to sustained growth in genAI infrastructure spending by
the large cloud service providers. Nvidia’s string of upcoming launches pushes beyond
the company’s mainstay AI training market into AI inference and services, where
requirements to perform new types of high-performance computing tasks could feed
back into data center demand. The revenue opportunity from sovereign AI taking shape
over the medium-to-long term could also prove significant.
Advanced Micro Devices | AMD | Buy
Data center segment growth matters most as accelerated computing clears way
for market share gains
Our analysts are encouraged by AMD’s recent wins selling chips tailored for data
centers running high-performance computing workloads, citing the segment’s
above-average growth potential and gross margin profile. For one, they raised their
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forecast for AMD’s data center GPU revenue in 2024/25 to $4.8bn/$10.5bn from
$4bn/$8bn previously, encouraged by the company’s own revenue guidance upgrade on
the back of strong traction for AI chips with multiple cloud and enterprise customers.
AMD also looks on track to gain additional share in server CPUs, another type of
processor used in cloud-native and hyperscale applications, over the following quarters,
a development our team says should help boost margins throughout FY2024.
ARM Holdings | ARM | Buy
Growing data center contribution to royalty revenue growth supports higher

earnings and valuation
Rather than manufacturing semiconductors on its own or partnering with a fab, Arm
licenses proprietary chipmaking instruction sets to companies that build custom
components using Arm’s designs. While the company derives the majority of its royalty
revenues from smartphone makers, our team notes Arm’s focus on power efficiency
positions its technology as an emerging competitor to the x86 architecture that has
historically dominated the market for data center processors. Our team points to
growing traction for Arm’s designs across the likes of Amazon (Graviton CPU), Microsoft
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(Cobalt CPU) and Nvidia (Grace CPU) and estimates the contribution of the infrastructure
segment — which includes data centers — will grow to 16% of total royalty revenue in
FY26 from 11% in FY23.
Intel | INTC | Sell
Wallet share losses in data center compute outweigh PC market share lead and
product roadmap progress
Intel’s share of the data center computing market has declined from ~83% five years
ago to ~20% today as customers have increasingly opted for Nvidia, AMD and
Arm-based chips engineered to handle accelerated workloads over Intel’s mainstay
range of CPUs focused on general-purpose compute. Our team believes the trend
should continue through 2024, estimating Intel lost data center wallet share again last
quarter despite posting a double-digit percentage sequential increase in server CPU
revenues. Our analysts recognize Intel’s efforts to catch up, highlighting its AI-focused
Gaudi range and two new server processor launches slated for 2024, but note they have
yet to see evidence the company’s data center wallet share is stabilizing.
TSMC | 2330.TW | Buy, on CL
Advanced packaging demand and AI revenue contribution upgrade add to strong

growth outlook
The most powerful data center chips from the likes of Nvidia and AMD are
manufactured by Taiwan’s TSMC, a global leader in cutting-edge nodes that also provides
the advanced packaging technology (CoWoS) needed to produce the highest-end AI
semis. TSMC is working with almost all customers to implement its next-generation N2
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— or 2 nanometers — technology, on track for mass production in 2025, and the
company recently said it expects the contribution of AI to total revenue in 2027 to come
in at high teens % or higher, up from a previous estimate in the low teens %. Given the
pace at which demand for CoWoS is outstripping supply even as TSMC plans to double
capacity this year, our team expects more AI players to partner with foundries including
TSMC to secure CoWoS supply, which adds to our team’s investment case.
SK Hynix | 000660.KS | Buy, on CL
Established HBM leader riding advantage in AI memory chips with margin upside
from new products
The boom in GenAI and high-performance computing has lifted the market for
high-bandwidth memory (HBM), a newer type of memory chip technology suited to
resource-intensive data center applications where speed is critical. SK Hynix moved
ahead of peers to establish itself as the leading maker of premium HBM chips for AI and
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win business from Nvidia, by far the largest consumer of HBM today. Hynix expects to
generate revenue from its pricier next-gen HBM3E product from 2Q24 and for HBM3E
to surpass HBM3 in its mix in 2H24. Despite aggressive HBM capacity expansion
across suppliers, Hynix does not expect the market to become oversupplied over the
medium term given contracts are typically agreed about a year in advance, giving
producers enough visibility into demand.
Micron Technology | MU | Buy
Underappreciated AI beneficiary where HBM share gains from a low base should
help drive positive EPS revisions
Micron has stated it’s aiming to generate several hundred million dollars in HBM
revenue in FY24 and eventually gain market share in HBM that mirrors its competitive
position in the overall DRAM market. Our team sees growing evidence the company is
making progress against this goal: Micron recently said it has started producing its
HBM3E product at volume and that shipments to Nvidia for use in its H200 Tensor Core
GPUs will begin in 2QCY24. In our analysts’ view, investors will be focused on the pace
and profitability of Micron’s HBM ramp over the next quarters.
Samsung Electronics | 005930.KS | Buy
Cyclical recovery in memory and HBM growth boost profitability outlook
Our team expects the recovery in the memory cycle to drive significant profit growth for
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Samsung this year, helping counteract the weaker earnings outlook for its foundry and
consumer electronics businesses. The company, which has said it won a major GPU
customer in 4Q23, began mass-producing HBM3 in 3Q23 and is targeting to start
making HBM3E at volume in 1H24. The combined sales volume of the two products is
expected to represent approximately 90% of the total HBM segment in 2H24, a target
our team says underscores Samsung’s confidence it can ramp up its share in
new-generation DRAM used for AI servers.
Ibiden | 4062.T | Buy
Highest-quality ABF substrate supplier set to ride AI data center growth
The semis companies producing the most powerful chips used in AI data centers need
premium ABF substrates, thin layers of material that connect and support integrated
circuits. Our team sees Japan’s Ibiden as the strongest ABF substrate supplier in terms
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of R&D capability as well as production yield rate and quality, which should allow the
company to win more business from high-end customers (which have included Nvidia
and AMD) demanding finer and multilayered ABF substrates to help improve chip
performance. Strong momentum in premium substrates should help counteract lower
demand for mid-to-low end ABF products at Ibiden and peers.
Unimicron Technology | 3037.TW | Buy
Demand for high-end ABF substrates clears path for revenue and margin boost
Taiwan substrate maker Unimicron is a key supplier of ABF substrates for several Nvidia
products, which means the company is likely to support more of Nvidia’s GPUs going
forward with pricier, higher-spec materials. Our team says that should help boost
revenue and margins in the coming quarters and years. The company has said it’s
supporting all leading semi players in the AI server industry, with AI-related products
accounting for double-digit % of the company’s ABF and PCB (printed circuit boards)
revenue in 4Q23-1Q24.
Chipmaking tech
Semis names that sell specialized technologies and machines used in the chip
fabrication process could also stand to benefit from data center growth. Our analysts
highlight Applied Materials (Buy), Lam Research (Buy) and KLA (Buy) in the US,
ASML (Buy, on CL), BE Semiconductor Industries (Buy) and ASM International
(Buy) in Europe, and ASMPT (Buy), Tokyo Electron (Buy) and DISCO (Buy) in Asia.
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Makers of technologies that allow data centers to process and transmit information at
ultra-high speeds
Broadcom | AVGO | Buy
Data center networking and custom compute offload boost AI chip franchise,
adding to strong software margins
To run AI workloads, data centers rely on fast networks that can scale at low latencies.
The effort often requires users to offload the most resource-intensive computational
tasks to processors custom-built for their applications. Broadcom’s portfolio of
specialized silicon chips (ASICs), an area where the company moved ahead of many
peers, meets both needs, putting the company on track for >100% yoy growth in its AI
business in FY24, 16% yoy growth in FY25 and 13% yoy growth in FY26, our team
predicts. Our analysts see growing demand from a wider base of customers for
Broadcom’s high-speed networking chips and believe the company is ramping volume
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with a second U.S.-based hyperscale customer in custom compute. That’s in addition to

tailwinds from its years-long partnership with Google, whose TPUs are supported by
Broadcom’s ASICs.
Marvell Technology | MRVL | Buy
Strength in data center connectivity with fast-growing custom compute franchise

adding to AI revenue
Our analysts view Marvell, whose digital signal processors (DSPs) support
high-bandwidth optical connectivity for AI platforms, as a key enabler of data center
networks set to ride the AI infrastructure boom. While the company recently guided
FY1Q declines in its carrier infrastructure and enterprise networking segments, which
are expected to offset the sustained strength in the AI optics and custom compute
businesses, our analysts expect 800G PAM4 optical DSPs and custom compute to drive
double-digit % yoy growth in total data center revenue throughout FY2025. Our team
models a ~2.5x yoy revenue increase for Marvell’s AI franchise from $550mn-600mn
(~10% of total revenue) in FY2024 to ~$1.4bn (~26% of total revenue) in FY2025. That’s
as they expect data centers to account for ~70% of total revenue in FY2026, up from
40% in FY2024.
Credo Technology Group | CRDO | Buy
Broadening US hyperscaler customer base adds momentum for data center

networking disruptor
Credo is another company on track to benefit from its innovation in the data center
networking space. Our team sees growing evidence the company’s high-performance
copper active electrical cables (AECs) — used as interconnectors in data center racks,
among other applications — are being adopted at companies beyond Credo’s largest
customer (Microsoft, per public filings). Our team models an inflection in AEC revenue in
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2HFY25 as Credo’s second U.S.-based hyperscale customer (Amazon, according to our
team’s industry discussions) fully ramps, and further growth in FY2026 as more
hyperscalers are likely to shift to AEC-based in-rack connectivity. Our team believes
Credo is well-placed to ride the strengthening shift from traditional passive copper
cables to AECs as well as to gain share in optical digital signal processors (from a low
base), highlighting that AI clusters could require ~5x the number of cables vs. traditional
compute racks.
Arista Networks | ANET | Buy
Cloud data center switching leader with best-in-class platform set to capitalize on
AI networking expansion
The leading branded provider of switches to US hyperscalers including Meta and

Microsoft (21% and 18% of 2023 revenue, respectively), ANET should benefit from
rising demand for the high-performance, low-latency, scalable components needed to
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build AI data center networks. The company recently reiterated its expectation to gain at
least $750mn in AI networking revenue by 2025 and ramp quickly once large cluster
deployments begin that year. Our team expects the trend to support strong double-digit
revenue and EPS growth at ANET over the next several years, adding that the
company’s 2024 revenue guidance likely does not reflect any benefit from the recent
increases in hyperscalers’ capex plans.
Cisco Systems | CSCO | Neutral
AI networking progress encouraging but corporate spending slowdown weighs on

outlook
CSCO has a wider portfolio of networking solutions than any of its key competitors but
has been losing market share to lower-cost peers and more nimble companies with
specific vertical solutions (e.g. ANET in data center switching). While a slowdown in its
service provider business and customers’ prolonged inventory digestion led the
company to cut F2024 guidance, our team sees CSCO’s rising engagement with AI
customers including Microsoft as a bright spot. CSCO reiterated its expectation for $1bn
in AI orders by F2025 and expects a majority of the volume to turn into revenue that
year. Its Silicon One ASIC chip, which can support large-scale GPU clusters in AI
workloads, is helping drive those orders, with three out of four major hyperscalers using
the company’s Ethernet AI fabric. What’s more, CSCO recently announced a partnership
with NVDA to offer simplified AI infrastructure, Ethernet networking, and software to
enterprise customers, contributions from which are not reflected in its AI revenue
outlook.
Hewlett Packard Enterprise | HPE | Not Rated
Juniper acquisition strengthens AI capabilities and boosts TAM in data center

networking
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Per management, HPE’s acquisition of Juniper (expected to close by late 2024/early
2025 subject to regulatory and JNPR shareholder approval) should bolster its presence
in the AI data center market as Juniper’s switches and routers, which have strong AI
capabilities, boost the networking power of HPE’s computing hardware and software.
According to management, the TAM expansion for HPE across Juniper’s data center
switching, firewall and routing businesses represents ~30%, or $35bn, growth in HPE’s
addressable market.
Amphenol | APH | Buy
Leading connectors company well-positioned to capitalize on fast-growing AI

product opportunities
Amphenol, which sells connectors used to transmit power, data, and signals into end
markets from automotive to consumer electronics, is seeing strong demand for its
components from AI data centers. Our team thinks Amphenol is well-positioned as a
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key supplier of reliable, high-performing electronics for a fast-growing end market, in

part driven by the company’s record of strong execution (EBIT margins reached a record
high in 4Q23). What’s more, our team estimates connectors for AI applications now
represent a mid-single digit percent of total company revenue, adding that AI-related
demand can help sustain sales growth over the medium to long term.
TE Connectivity | TEL | Buy, on CL
Higher dollar content for AI applications adds to long-term revenue growth

trajectory
Another leading supplier of automotive and industrial connectors and sensors, TEL
expects AI revenue to rise materially in the second half of FY2024. TEL’s content in
AI-related data center applications is ~50% higher than for non-AI data center uses, and
the company expects AI programs to contribute ~$200mn in FY24, which our team also
believes could prove a tailwind to margins. In our analysts’ view, the company’s growing
exposure to secular trends including AI/data centers and electrification should help TEL
grow revenues over the long run. TEL has said it has ~$1.3bn of pipeline wins related to
AI programs over the next 3-4 years.
Innolight | 300308.SZ | Buy
AI exposure supports strong growth outlook for China’s leading optical

transceiver supplier
Innolight is China’s largest optical transceiver supplier for the datacom market in terms
of revenue. The company was among the earliest suppliers to ramp 800G optical
transceiver shipments (starting mass shipment in 2Q23 vs. other peers likely in late
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2024), an early-mover advantage our team says suggests Innolight has the largest
exposure to AI-related 800G demand. As a result, our team expects Innolight to enjoy
stronger EPS growth relative to competitors. They foresee robust profit growth in 2025
driven by ongoing AI investment and faster optical transceiver product upgrades (from
800G to 1.6T).
Eoptolink | 300502.SZ | Buy
400G/800G ramp in AI infrastructure to drive robust profit growth in 2024 and 2025
Eoptolink, another key optical transceiver maker in China, looks well-positioned to ride
the 400G/800G volume ramp as its customers deploy more powerful devices to support
AI infrastructure in 2024 and 2025. Our team expects 400G to lead Eoptolink’s earnings
recovery in 2024 off last year’s trough and the 800G ramp to be the primary earnings
driver in 2025.
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Servers, Storage and Support

Dell Technologies | DELL | Buy
AI servers emerging as key driver of long-term growth and earnings power
Dell’s portfolio of AI servers optimized to host chips such as Nvidia’s H100 should prove
a lasting engine of growth for the company, our team says. Its AI server backlog
increased to $2.9bn exiting F4Q, up from $1.6bn exiting F3Q and $800mn in F2Q, with
H100 lead times improving from the 39 weeks seen in F3Q24. What’s more, Dell is
receiving orders for servers tailored for future GPU releases — part of its current
backlog includes servers with the H200 and MI300x chips as customers plan future AI
investments. Our team forecasts HSD% long-term growth in Dell’s infrastructure
solutions group (ISG) segment, adding that Dell’s market-leading position in enterprise
servers & storage combined with its AI capabilities will help the company maintain or
gain share across key enterprise categories.
Super Micro Computer | SMCI | Neutral
R&D-led data center infrastructure player with key chipmaker partnerships trading
at a premium
SMCI, a specialized supplier of high-performance server and storage systems, has

essentially transformed itself into an AI infrastructure company, a strategy that has
precipitated a revenue and earnings power inflection over the last two years mirroring
NVIDIA’s. Its modular approach to server design, which allows SMCI to bring to market
highly configurable systems quickly, has helped solidify the company’s longstanding
partnerships with key AI component suppliers such as NVIDIA, AMD, and Intel. While
our analysts see SMCI capitalizing on strong demand from AI cloud service providers
over the next few years, they note the company will likely encounter growing
competition in the enterprise market in the years after, especially from more
enterprise-focused IT hardware suppliers such as DELL and CSCO. They expect revenue
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growth to slow from a 61% 3Y CAGR (F2021-24E) to 51% yoy in F2025 and 9%
thereafter.
Flex | FLEX | Buy
Rise of hyperscale data centers in revenue mix adding to earnings growth
Flex, which builds products ranging from custom servers, racks and enclosures to
storage systems and even power products, has moved to raise its exposure to the
hyperscale data center market over the past few years. Our team estimates that market
now comprises >10% of Flex’s revenue, making for a meaningful contribution to
earnings growth. Our team recently raised its EPS estimates in FY25/26 to better reflect
the opportunity from non-traditional, higher-growth areas including data centers, which
they say have higher margin potential vs. traditional end markets such as consumer
electronics where Flex has reduced its exposure. Our team believes the shift in
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business mix is contributing to higher margins and more resilient earnings.
Jabil Circuit | JBL | Buy
Increasing percent of revenue coming from data centers with focus on profits/FCF
contributing to more durable margins and EPS
A Flex peer, Jabil has made a similar move to raise its exposure to faster-growing and
more profitable end markets including cloud data centers, which our team estimates
now account for at least 10% of its revenues. The company, like Flex, has reduced its
revenue exposure to consumer products including selling its mobility business (where it
housed its iPhone metal casing business) last year. The effort in part has contributed to
Jabil’s non-GAAP EBIT margin rising from 3.7% in FY2015 to 5% in FY2023, our team
says, given the end markets it’s been focusing on typically carry better EBIT margins.
Our team believes the shift in business mix is contributing to higher margins and more
resilient earnings.
Seagate Technology | STX | Neutral
Encouraging progress on HAMR commercialization at US hyperscalers
Seagate recently reaffirmed its plan to ship ~1mn drives that implement the novel
HAMR technology, which boosts the amount of data that can be stored on a hard drive,
in 1HCY24. The maker of mass-data storage solutions expects to complete the product
qualification process at the majority of U.S.-based hyperscalers during CY2024, noting
demand from large-scale data center customers looking to optimize storage. Our team
believes a successful ramp across multiple customers could drive share growth in the
high-capacity segment and help Seagate improve margins. While our team is
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encouraged by the company’s progress toward HAMR commercialization and the
ongoing cyclical recovery in nearline HDD demand, they are Neutral-rated primarily on
valuation.
Foxconn Industrial Internet | 601138.SS | Buy
Broad AI supply chain exposure and shift to cloud service customers driving
margin expansion
Our team believes FII, a cloud and networking revenue contributor to Hon Hai, stands
out from competitors due to its broad exposure across the AI supply chain through its
GPU modules, GPU baseboards, motherboards, AI servers, networking equipment,
full-rack server clusters, and cooling solutions. Add to that the company’s geographically
diverse manufacturing capacity across Taiwan, Mainland China, South East Asia, Mexico
and the US, and our analysts say FII should expand its AI servers customer base, with
blended GM expansion on the back of product mix upgrades (more cloud and
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networking) and business model migration (from OEM to ODM). The company has said
the impact on its business from the US restrictions on chip exports to China should
prove manageable, adding it has thus far not observed a clear trend of customers
moving to local solutions (FII noted it’s capable of meeting that demand should it arise).
Elite Material | 2383.TW | Buy
AI-driven server upgrades add to revenue opportunity for Nvidia copper clad
laminate supplier
Taiwan’s Elite Material is a leading supplier of high-end copper clad laminate (CCL), a
base material used to manufacture printed circuit boards, tailored for use in data center
switches and AI servers. The company is the sole supplier for NVDA AI servers globally,
though our team notes that will likely change in the future as NVDA could look to reduce
supply chain risks. Despite the possible market share loss in next-gen GPU platforms,
our team believes EMC’s exposure to the AI server market should drive strong revenue
growth and GM/OPM expansion in the long term as the company capitalizes on rising
CoWoS capacity, server shipment increases and the shift to higher-end substrates.
Taiwan Union Technology | 6274.TWO | Buy
High-end copper clad laminate share gainer capitalizing on higher ASPs for
low-loss products
While our team expects EMC to maintain its leading market share position in the CCL
market for AI servers, they say TUC, another global supplier of premium CCL used in
high-end switches and AI server materials, could prove a key share gainer. Our analysts
see upside to revenue and margins as customers upgrade to higher-bandwidth,
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lower-latency switches. They note the ASP for extreme low-loss products is 4x higher
than the company’s average ASP, with the GM at 40%+ vs. the company average at
~20%.
GCE | 2368.TW | Buy
Global PCB supplier with key supply chain relationships riding shift to higher-gen
switches
GCE, a key supplier of printed circuit boards (PCB) for cloud applications that holds 20%
market share globally, looks set to ride the rising demand for its electrical content in
higher-generation servers and switches as customers invest in infrastructure to support
AI data center connectivity. GCE recently noted customers are upgrading to 800G
switches earlier than anticipated, adding that AI server revenue could grow 100%+ YoY
in 2024. What’s more, our team says GCE’s strong relationships with key CCL suppliers
such as EMC, TUC and ITEQ could prove an advantage in a scenario where high-speed
CCL supply becomes a bottleneck for the high-performance computing PCB market.
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Among companies in Asia with a presence in the AI server market, our analysts are also
watching Delta Electronics (Buy), King Slide (Buy), Lenovo (Buy), Wiwynn (Buy),
Gigabyte (Buy), Inventec (Neutral), Pegatron (Neutral), Quanta (Buy), Wistron
(Buy), Asus (Buy) and Compal (Neutral) for evidence of strengthening orders.
Infrastructure
Vertiv Holdings | VRT | Buy
Strong orders and backlog fuel long-term revenue growth trajectory
Data centers running accelerated workloads, including AI, require powerful cooling and
power management tools to keep them from overheating. Vertiv, which sells systems
that span power, cooling, monitoring, and racks, expects AI to boost global data center
market growth through 2028 by an incremental 300-400 bps for a total CAGR of 9-12%.
Vertiv’s opportunity from a high-density workload increases to ~$3mn-3.5mn per MW

compared to $2.5mn-3mn per MW for a traditional compute equivalent. Our team is
encouraged by the large, longer-dated bookings in 2H23 and believes that solid pricing
should support strong revenue and margins in the near to intermediate term.
nVENT Electric | NVT | Buy
A mega-projects beneficiary with exposure to the liquid cooling and the electrical
needs of data centers
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In our analysts’ view, NVT’s scale, manufacturing expertise, testing capabilities and
modular design help its data center offerings stand out from competitors. The
company’s extensive portfolio of data center racks and cabinets, cable and power
management, and cooling solutions should help NVT win more business amid growing
demand for electrical content in new projects spurred by the US manufacturing
renaissance. Our team expects the de-stocking NVT has seen over the past quarters to
subside in 2024 and believes the company’s FY24 guide appears conservative.
Eaton | ETN | Buy
Data center construction adds to attractive exposure for US re-industrialization

winner
Our team considers electrical systems manufacturer Eaton as one of the

best-positioned multis offering exposure to mega-trends such as AI adoption and US
re-industrialization. Management said last year they consider new-build data centers the
greatest source of future revenue, estimating ETN’s content per data center at roughly
~$1mn/MW, with upgrades to existing architecture driven by generative AI expected to
14 March 2024 13
be additive. The higher power density in a GenAI data center should drive demand for
higher kW IT racks, and ETN is collaborating with partners to boost its presence in the
cooling space. In our team’s estimates, ETN is well positioned to achieve >$6bn in
revenues for their data center & distributed IT business by the end of the decade.
Shenzhen Envicool Technology | 002837.SZ | Buy
China liquid cooling player with large order wins
Envicool specializes in precision cooling technology for servers, data centers and energy
storage systems. Our team believes investments in generative AI will drive strong
growth in revenues from data center room cooling and server cooling, especially as the
company capitalizes on the transition from air to liquid cooling (liquid cooling content can
be worth 2-3x more than air alternatives). Envicool started supplying liquid coolant to
TikTok owner Bytedance in 2023, partially replacing US suppliers’ products, and recently
won a large order from H3C, one of the top server makers in China.
Nidec | 6594.T | Buy
Growing focus on revenue opportunity from water cooling for data centers
Japan’s Nidec, whose business spans small precision motors, automotive products, and
appliance, commercial & industrial products, recently noted the water cooling system
business is showing signs of rapid growth. FY3/24 sales of around ¥1bn could increase
to ¥20-¥40bn in FY3/25, which equates to 10-20x Nidec’s initial assumption of around
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¥2bn. Such a rise would result in a market share of 10-20% and operating margin of
15-20%.
MYR Group | MYRG | Buy
North America’s second-largest electrical contractor poised to gain from data

center spending
Within its commercial and industrial segment, electrical contractor MYR Group typically
focuses on highly technical projects where its expertise differentiates it from peers.
Those include work in data centers, airports and hospitals. While the company has not
disclosed its current exposure to data centers and our analysts do not currently model it
separately, they believe rising data center capex over the next several years could add to
revenue upside.
14 March 2024 14
In Europe, our analysts highlight ABB (Buy), Siemens (Buy), Legrand (Neutral) and
Schneider Electric (Sell) among suppliers of machinery and electrical equipment
exposed to data center demand.
Data center operators

Companies operating local data center assets could benefit from growing demand for
lower latency and multi-cloud architectures. Examples include Macquarie Technology
Group (Buy) and NEXTDC (Buy) in Australia, and GDS Holdings (Buy) and VNET
Group (Neutral) in China.
Real estate cos

The fast growth in exploratory AI capabilities by many global firms, entrenching
working-from-home practices, a generational tailwind that has increased internet
penetration and greater developing economy internet usage are all contributing to the
growing need for data storage, and therefore data center real estate. Our analysts
highlight potential beneficiaries as those with warehouse development capabilities and
land with access to power (either now or in the future), which is a key constraint to data
center real estate growth. From our US/UK/European coverage, potential beneficiaries
include Prologis (Buy), SEGRO (Neutral), Tritax Big Box (Buy), Merlin Properties
Socimi (Buy) and CTP (Buy).
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Energy providers exposed to data centers’ growing power load requirements
Southern | SO | Buy, on CL
Majority of emerging load in Georgia is linked to data centers
US electricity producer Southern has pointed to data centers as a potential boost to

commercial demand in the coming years. About 80% of its emerging load in Georgia is
linked to data centers. Load growth opportunities have helped drive the recent increase
in Southern’s capital investment plan and could help lower rates for existing customers
given increased kWh sales.
Sempra | SRE | Buy
Texas growth demonstrates opportunity from data centers, electrification
Our analysts see opportunity in SRE’s exposure to the growing Texas market via its
Texas utility Oncor, which recently increased its capital program by $5bn, and foresee
significant investment need in transmission going forward. The company has pointed to
14 March 2024 15
strong growth in both the number of commercial & industrial customers and in power
demand from those customers, with data center development and oil & gas
electrification among the areas supporting the increases.
American Electric Power | AEP | Buy
Load demand driven by data centers in Ohio, Texas, Indiana
Management last year noted stronger commercial load largely driven by data centers in
Ohio, Texas, and Indiana. Our team sees opportunity in AEP’s transmission and
regulated renewables exposure, with potential upside from load growth.
Dominion Energy | D | Not Rated
Exposure to data center-driven demand in Virginia
To serve expected demand growth from data centers and to grow the utility business, D
recently introduced a new five-year capital plan of around $43bn from 2025 to 2029. Of
that spend, $35.5bn has been allocated to D’s Virginia subsidiary (D is the largest utility
serving the state of Virginia), where our team sees meaningful near/medium-term
potential for infrastructure investment and load growth to supply power to new data
centers.
E.ON | EONGn.DE | Buy, on CL
Europe grid modernization supported by data center demand to drive higher

capex and support earnings
Nearly half of Europe’s power distribution grid is over 40 years old, bringing into focus
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the need to expand and modernize grids expected to cope with rising connection
requests from renewables as well as new customers such as data centers. Our team
estimates EON’s power distribution capex will grow by 70% within five years,
supporting double-digit annual growth in its regulated asset base. Our team says the
trend should support double-digit earnings growth from EON’s power distribution
activities.
Iberdrola | IBE.MC | Buy
Attractive power grid exposure helps limit earnings volatility
Power generator and network operator Iberdrola should also benefit from the wave of
power grid upgrades in Europe spurred by digitalization (sensors, AI software,
transformers), renewables growth and electrification, in our team’s view. Our analysts
expect Iberdrola’s power grids EBITDA – which comprises nearly half of Iberdrola’s
group profits through our analysts’ forecast period – to contribute a high single-digit
growth rate until later in the decade.
14 March 2024 16
Our team highlights EDP Renovaveis (Buy) and Fortum (Neutral) as two other
European names with exposure to rising connection requests related to data center
growth.
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14 March 2024 17
Table of featured stocks

Name GS Ticker GS Rating Country of HQ Sector Market cap ($bn) Covering analyst
Compute and memory
Nvidia Corp. NVDA Buy, on CL United States Semiconductors 2,263.1 Toshiya Hari
Advanced Micro Devices Inc. AMD Buy United States Semiconductors 314.8 Toshiya Hari
ARM Holdings ARM Buy United States Semiconductors 137.7 Toshiya Hari
Intel Corp. INTC Sell United States Semiconductors 182.5 Toshiya Hari
TSMC 2330.TW Buy, on CL Taiwan Semiconductors 641.7 Bruce Lu
SK Hynix Inc. 000660.KS Buy, on CL South Korea Semiconductors 87.9 Giuni Lee
Micron Technology Inc. MU Buy United States Memory 103.1 Toshiya Hari
Samsung Electronics 005930.KS Buy South Korea Semiconductors 385.6 Giuni Lee
Ibiden 4062.T Buy Japan Electronic Components 6.2 Daiki Takayama
Unimicron Technology 3037.TW Buy Taiwan Electronic Components 8.2 Daiki Takayama
Applied Materials Inc. AMAT Buy United States Capital Equipment 167.9 Toshiya Hari
Lam Research Corp. LRCX Buy United States Capital Equipment 122.1 Toshiya Hari
KLA Corp. KLAC Buy United States Capital Equipment 93.3 Toshiya Hari
ASML Holding ASML.AS Buy, on CL Netherlands Semiconductors 375.5 Alexander Duval
BE Semiconductor Industries BESI.AS Buy Netherlands Semiconductors 12.7 Alexander Duval
ASM International ASMI.AS Buy Netherlands Semiconductors 30.6 Alexander Duval
ASMPT 0522.HK Buy China Semiconductors 5.6 Allen Chang
Tokyo Electron 8035.T Buy Japan Capital Equipment 118.0 Shuhei Nakamura
DISCO 6146.T Buy Japan Capital Equipment 36.9 Shuhei Nakamura
Networking and connectivity
Broadcom Inc. AVGO Buy United States Semiconductors 587.4 Toshiya Hari
Marvell Technology Inc. MRVL Buy United States Semiconductors 58.5 Toshiya Hari
Credo Technology Group CRDO Buy Cayman Islands Semiconductors 3.5 Toshiya Hari
Arista Networks Inc. ANET Buy United States Communications Technology 89.5 Michael Ng, CFA
Cisco Systems Inc. CSCO Neutral United States Communications Technology 204.1 Michael Ng, CFA
Hewlett Packard Enterprise Co. HPE Not Rated United States Hardware 23.6 Michael Ng, CFA
Amphenol Corp. APH Buy United States Industrial Tech 68.8 Mark Delaney, CFA
TE Connectivity Ltd. TEL Buy, on CL United States Industrial Tech 44.3 Mark Delaney, CFA
Innolight 300308.SZ Buy China Data & Storage Networking 18.4 Jin Guo
Eoptolink 300502.SZ Buy China Data & Storage Networking 6.6 Jin Guo
Servers, storage and support
Dell Technologies Inc. DELL Buy United States Hardware 80.4 Michael Ng, CFA
Super Micro Computer Inc. SMCI Neutral United States Communications Technology 70.1 Michael Ng, CFA
Flex FLEX Buy United States Industrial Tech 12.5 Mark Delaney, CFA
Jabil Circuit Inc. JBL Buy United States Industrial Tech 19.7 Mark Delaney, CFA
Seagate Technology STX Neutral United States Drives 18.8 Toshiya Hari
Foxconn Industrial Internet 601138.SS Buy China Equipment 67.1 Verena Jeng
Elite Material 2383.TW Buy Taiwan Electronic Components 4.1 Chao Wang
Taiwan Union Technology Corp. 6274.TWO Buy Taiwan Electronic Components 1.2 Chao Wang
GCE 2368.TW Buy Taiwan Hardware 3.9 Chao Wang
Delta Electronics 2308.TW Buy Taiwan Industrial Machinery 26.0 Bruce Lu
King Slide 2059.TW Buy Taiwan Hardware 3.8 Verena Jeng
Lenovo 0992.HK Buy China PCs 15.0 Verena Jeng
Wiwynn 6669.TW Buy Taiwan Hardware 12.9 Lynn Luo
Gigabyte 2376.TW Buy Taiwan Hardware 6.6 Lynn Luo
Inventec 2356.TW Neutral Taiwan Hardware 6.2 Lynn Luo
Pegatron 4938.TW Neutral Taiwan Hardware 7.6 Lynn Luo
Quanta 2382.TW Buy Taiwan Hardware 30.7 Allen Chang
Wistron 3231.TW Buy Taiwan Hardware 10.4 Lynn Luo
Asus 2357.TW Buy Taiwan Hardware 10.3 Lynn Luo
Compal 2324.TW Neutral Taiwan Hardware 5.1 Lynn Luo
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Infrastructure
Vertiv Holdings VRT Buy United States Industrial Tech 28.7 Mark Delaney, CFA
nVENT Electric Plc. NVT Buy United States Multi-Industry 11.9 Joe Ritchie
Eaton Corp. ETN Buy United States Multi-Industry 120.6 Joe Ritchie
Shenzhen Envicool Technology 002837.SZ Buy China Multi-Industry 2.6 Jacqueline Du
Nidec 6594.T Buy Japan Electronic Components 21.7 Daiki Takayama
MYR Group MYRG Buy United States Engineering & Construction 2.6 Ati Modak
ABB Ltd. ABBN.S Buy Switzerland Electrical Equipment 103.0 Daniela Costa
Siemens AG SIEGn.DE Buy Germany Electrical Equipment 159.1 Daniela Costa
Legrand LEGD.PA Neutral France Electrical Equipment 28.2 Daniela Costa
Schneider Electric SCHN.PA Sell France Electrical Equipment 130.0 Daniela Costa
Macquarie Technology Group MAQ.AX Buy Australia Data Centers 1.3 Chris Gawler, CFA
NEXTDC Ltd NXT.AX Buy Australia Data Centers 6.0 Kane Hannan, CFA
GDS Holdings 9698.HK Buy China Data Centers 1.2 Timothy Zhao
VNET Group VNET Neutral China Data Centers 0.3 Timothy Zhao
Prologis Inc. PLD Buy United States REITs 127.0 Caitlin Burrows
SEGRO Plc SGRO.L Neutral United Kingdom Industrial 13.9 Tom Musson, CFA
Tritax Big Box BBOXT.L Buy United Kingdom Real Estate 3.6 Tom Musson, CFA
Merlin Properties Socimi SA MRL.MC Buy Spain Diversified 4.7 Jonathan Kownator
CTP N.V. CTPNV.AS Buy Czech Republic Industrial 6.6 Jonathan Kownator
Power
Southern Co. SO Buy, on CL United States Electric Utilities 76.8 Carly Davenport
Sempra SRE Buy United States Electric Utilities 44.8 Carly Davenport
American Electric Power AEP Buy United States Electric Utilities 42.8 Carly Davenport
Dominion Energy Inc. D Not Rated United States Diversified 39.0 Carly Davenport
E.ON EONGn.DE Buy, on CL Germany Power 36.2 Alberto Gandolfi
Iberdrola SA IBE.MC Buy Spain Power 77.0 Alberto Gandolfi
EDP Renovaveis SA EDPR.LS Buy Spain Renewables 15.7 Alberto Gandolfi
Fortum OYJ FORTUM.HE Neutral Finland Generation 11.5 Ajay Patel
Source: Goldman Sachs Global Investment Research
14 March 2024 18
Disclosure Appendix
Reg AC
We, Aleksandra Gjorgievska and Brian Rooney, hereby certify that all of the views expressed in this report accurately reflect our personal views, which
have not been influenced by considerations of the firm’s business or client relationships.
Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Goldman Sachs’ Global Investment Research division.
Disclosures
Rating and pricing information
ARM Holdings (Buy, $131.27), ASM International (Buy, €566.50), ASML Holding (Buy, €878.90), ASMPT (Buy, HK$105.50), Advanced Micro Devices Inc.
(Buy, $194.79), American Electric Power (Buy, $83.00), Amphenol Corp. (Buy, $110.53), Applied Materials Inc. (Buy, $200.56), Arista Networks Inc. (Buy,
$280.71), BE Semiconductor Industries (Buy, €141.80), Broadcom Inc. (Buy, $1,257.87), Cisco Systems Inc. (Neutral, $50.11), Compal (Neutral,
NT$36.70), Credo Technology Group (Buy, $20.30), DISCO (Buy, ¥50,000), Dell Technologies Inc. (Buy, $110.00), Delta Electronics (Buy, NT$314.50),
Dominion Energy Inc. (Not Rated, $48.07), E.ON (Buy, €12.52), EDP Renovaveis SA (Buy, €13.18), Eaton Corp. (Buy, $300.24), Elite Material (Buy,
NT$405.00), Eoptolink (Buy, Rmb66.53), Flex (Buy, $28.75), Fortum OYJ (Neutral, €11.69), Foxconn Industrial Internet (Buy, Rmb24.35), GCE (Buy,
NT$229.00), GDS Holdings (H) (Buy, HK$7.35), Gigabyte (Buy, NT$328.00), Hewlett Packard Enterprise Co. (Not Rated, $17.90), Iberdrola SA (Buy,
€10.96), Ibiden (Buy, ¥6,614), Innolight (Buy, Rmb165.00), Intel Corp. (Sell, $43.23), Inventec (Neutral, NT$54.70), Jabil Circuit Inc. (Buy, $148.79), KLA
Corp. (Buy, $688.71), Lam Research Corp. (Buy, $926.71), Lenovo (Buy, HK$9.83), MYR Group (Buy, $156.00), Macquarie Technology Group (Buy,
A$78.70), Marvell Technology Inc. (Buy, $67.63), Micron Technology Inc. (Buy, $94.16), NEXTDC Ltd (Buy, A$17.47), Nvidia Corp. (Buy, $908.88),
Pegatron (Neutral, NT$89.90), Quanta (Buy, NT$250.50), SK Hynix Inc. (Buy, W163,600), Samsung Electronics (Pref) (Buy, W63,300), Seagate
Technology (Neutral, $88.67), Sempra (Buy, $70.82), Shenzhen Envicool Technology (Buy, Rmb32.89), Southern Co. (Buy, $69.94), Super Micro
Computer Inc. (Neutral, $1,188.07), TE Connectivity Ltd. (Buy, $141.39), TSMC (Buy, NT$779.00), Taiwan Union Technology Corp. (Buy, NT$154.00),
Tokyo Electron (Buy, ¥37,390), Unimicron Technology (Buy, NT$177.50), VNET Group (Neutral, $1.95), Vertiv Holdings (Buy, $73.37), Wistron (Buy,
NT$116.50), Wiwynn (Buy, NT$2,330.00), nVENT Electric Plc. (Buy, $70.75)
Pricing from close of 12 March 2024

Nidec (Buy, ¥5,556) EDP Renovaveis SA (Buy, €13.18), Fortum OYJ (Neutral, €11.69), ABB Ltd. (Buy, SFr42.05), Legrand (Neutral, €96.68), Schneider
Electric (Sell, €213.70), Siemens AG (Buy, €183.90), CTP N.V. (Buy, €15.70), Merlin Properties Socimi SA (Buy, €9.15), Prologis Inc. (Buy, $133.33),
SEGRO Plc (Neutral, 883.4p) and Tritax Big Box (Buy, 149.6p)
Pricing from close of 13 March 2024
Financial advisory disclosures

Goldman Sachs and/or one of its affiliates is acting as a financial advisor in connection with an announced strategic matter involving the following
company or one of its affiliates: Hewlett Packard Enterprise Company
company or one of its affiliates: Cisco Systems, Inc.
company or one of its affiliates: Dominion Energy, Inc.
Company-specific regulatory disclosures

Compendium report: please see disclosures at https://www.gs.com/research/hedge.html. Disclosures applicable to the companies included in this
compendium can be found in the latest relevant published research.
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Coverage universe disclosure
The rating(s) for Ibiden, Nidec is/are relative to the other companies in its/their coverage universe: Alps Alpine, Hirose Electric, IRISO
Electronics, Ibiden, Japan Aviation Electronics Industry, Kyocera, Mabuchi Motor, Maxell Ltd., MinebeaMitsumi Inc., Murata Mfg., NGK Insulators,
Nichicon, Nidec, Nippon Ceramic, Niterra, Nitto Denko, Pacific Industrial, Renesas Electronics, Rohm, TDK, Taiyo Yuden
The rating(s) for Amphenol Corp., Flex, Jabil Circuit Inc., TE Connectivity Ltd. and Vertiv Holdings is/are relative to the other companies in
its/their coverage universe: Amphenol Corp., Aptiv Plc, Aurora Innovation Inc., Belden Inc., BorgWarner Inc., Cerence Inc., ChargePoint Holdings,
Flex, Ford Motor Co., General Motors Co., Gentex Corp., Innoviz Technologies, Jabil Circuit Inc., Keysight Technologies Inc., Lear Corp., Luminar
Technologies Inc., Magna International Inc., Mobileye Global Inc., QuantumScape Corp., Rivian Automotive Inc., Sensata Technologies Holding,
Symbotic Inc., TE Connectivity Ltd., Tesla Inc., Vertiv Holdings, View Inc., Visteon Corp.
The rating(s) for ASM International, ASML Holding and BE Semiconductor Industries is/are relative to the other companies in its/their
coverage universe: ASM International, ASML Holding, BE Semiconductor Industries, CD Projekt, Embracer, Ericsson, Infineon, Logitech, Nokia,
STMicroelectronics, Stillfront
The rating(s) for Arista Networks Inc., Cisco Systems Inc., Dell Technologies Inc. and Super Micro Computer Inc. is/are relative to the other
companies in its/their coverage universe: Affirm Holdings, Apple Inc., Arista Networks Inc., Axon Enterprise Inc., Blend Labs, Block Inc., Cisco
Systems Inc., Compass Inc., Dell Technologies Inc., F5 Inc., HP Inc., Marqeta Inc., Offerpad Solutions Inc., Opendoor Technologies Inc., PayPal
Holdings, Redfin Corp., SoFi Technologies Inc., Super Micro Computer Inc., TD SYNNEX Corp., Upstart Holdings, Zillow Group
The rating(s) for ARM Holdings, Advanced Micro Devices Inc., Applied Materials Inc., Broadcom Inc., Credo Technology Group, Intel Corp., KLA
Corp., Lam Research Corp., Marvell Technology Inc., Micron Technology Inc., Nvidia Corp. and Seagate Technology is/are relative to the other
companies in its/their coverage universe: ARM Holdings, Advanced Micro Devices Inc., Amkor Technology Inc., Analog Devices Inc., Applied
Materials Inc., Arrow Electronics Inc., Avnet Inc., Broadcom Inc., Cohu Inc., Credo Technology Group, Entegris Inc., Impinj Inc., Intel Corp., IonQ Inc.,
KLA Corp., Lam Research Corp., Marvell Technology Inc., Microchip Technology Inc., Micron Technology Inc., NXP Semiconductors NV, Nvidia Corp., ON
Semiconductor Corp., Qorvo Inc., Seagate Technology, Skyworks Solutions Inc., Teradyne Inc., Texas Instruments Inc., Western Digital Corp.
The rating(s) for SK Hynix Inc. and Samsung Electronics (Pref) is/are relative to the other companies in its/their coverage universe: Hansol
Chemical, LG Display, LG Electronics, LG Innotek Co., SK Hynix Inc., Samsung Electro-Mechanics, Samsung Electronics, Samsung Electronics (Pref),
Samsung SDS Co.
14 March 2024 19
The rating(s) for Eaton Corp. and nVENT Electric Plc. is/are relative to the other companies in its/their coverage universe: Allegion Plc, Cognex
Corp., Core & Main Inc., Dover Corp., Eaton Corp., Flowserve Corp., General Electric Co., Graco Inc., Honeywell International Inc., ITT Inc., Illinois Tool
Works, Ingersoll Rand Inc., Johnson Controls International Plc, Kennametal Inc., Lennox International Inc., Mirion Technologies Inc., Parker Hannifin
Corp., RBC Bearings Inc., Regal Rexnord Corp., Rockwell Automation Inc., Roper Technologies Inc., Stanley Black & Decker Inc., Timken Co., Trane
Technologies Plc, Vontier Corp., Zurn Elkay Water Solutions Corp., nVENT Electric Plc.
The rating(s) for Delta Electronics and TSMC is/are relative to the other companies in its/their coverage universe: ASE Technology Holding, ASE
Technology Holding (ADR), Chipbond Technology Corp., Delta Electronics, GlobalWafers Co., King Yuan Electronics Co., Lotes, MediaTek, Novatek
Microelectronics, Parade Technologies Ltd., Realtek Semiconductor Corp., Silergy Corp., TSMC, TSMC (ADR), United Microelectronics Corp., United
Microelectronics Corp. (ADR), Vanguard International Corp., Win Semiconductors Corp., uPI
The rating(s) for Elite Material, GCE, Taiwan Union Technology Corp. and Unimicron Technology is/are relative to the other companies in
its/their coverage universe: Elite Material, GCE, ITEQ Corp, Kinsus, NYPCB, Taiwan Union Technology Corp., Unimicron Technology, Yageo Corp.
The rating(s) for Shenzhen Envicool Technology is/are relative to the other companies in its/their coverage universe: AVIC Jonhon, Anhui
Ronds, Best, CRRC Corp. (A), CRRC Corp. (H), Centre Testing Intl Group, Cubic Sensor & Instrument, Estun Automation Co., Faratronic, HCFA, Haitian
International Holdings, Han’s Laser Technology, HangKe Technology, Hongfa Technology, Hymson, Kehua Data Co., Lead Intelligent, Leader Harmonious
Drive Systems Co., Luster LightTech Co., Moons’ Electric, Nantong Jianghai Capacitor Co., OPT Machine Vision Tech Co., Pony Testing, Raytron
Technology, Sanhua Intelligent Controls, Shanghai Baosight Software, Shanghai Friendess Electronic Tech, Shenzhen Envicool Technology, Shenzhen
Inovance Technology Co., Shenzhen Kstar Science & Tech, Shuanghuan Driveline, Techtronic Industries, United Winners, Wuhan Raycus Fiber Laser
Tech, Yiheda Automation, Zhejiang Supcon Technology Co., Zhuzhou CRRC Times Electric Co. (A), Zhuzhou CRRC Times Electric Co. (H)
The rating(s) for E.ON, EDP Renovaveis SA, Fortum OYJ and Iberdrola SA is/are relative to the other companies in its/their coverage universe:
Acciona Energia, Centrica, E.ON, EDP Renovaveis SA, Elia Group, Enagas, Endesa SA, Enel SpA, Energias de Portugal, Engie, Fortum OYJ, Iberdrola
SA, Italgas SpA, Meyer Burger, National Grid Plc, Naturgy Energy Group, Nordex SE, Orsted A/S, Pennon Group, Public Power Corp., RWE, Redeia, SSE
Plc, Severn Trent Plc, Siemens Energy, Snam SpA, Solaria, Terna, United Utilities Group, Veolia Environnement, Vestas Wind Systems A/S
The rating(s) for Macquarie Technology Group is/are relative to the other companies in its/their coverage universe: Data#3 Ltd., Dicker Data
Ltd., Fineos Corp., Hansen Technologies Ltd., IDP Education Ltd., IPH Ltd., Ingenia Communities Group, Inghams Group, Life360 Inc., Lifestyle
Communities Ltd., Maas Group, Macquarie Technology Group, Objective Corp., ReadyTech Holdings, Technology One Ltd.
The rating(s) for American Electric Power, Sempra and Southern Co. is/are relative to the other companies in its/their coverage universe:
American Electric Power, Consolidated Edison Inc., Duke Energy Corp., Exelon Corp., NextEra Energy Inc., Public Service Enterprise Group, Sempra,
Southern Co., Xcel Energy Inc.
The rating(s) for DISCO and Tokyo Electron is/are relative to the other companies in its/their coverage universe: Advantest, DISCO, HOYA,
JEOL, Kokusai Electric, Lasertec, SCREEN Holdings, Tokyo Electron, Tokyo Seimitsu, Ulvac
The rating(s) for GDS Holdings (H) and VNET Group is/are relative to the other companies in its/their coverage universe: Beijing Sinnet
Technology Co Ltd., East Buy, GDS Holdings (ADR), GDS Holdings (H), Gaotu Techedu, KE Holdings (ADR), KE Holdings (H), Kanzhun Ltd., Kingsoft
Cloud, Ming Yuan Cloud, New Oriental Education & Technology (ADR), New Oriental Education & Technology (H), Offcn Education Technology, Perfect
Corp., TAL Education Group, Tuhu Car Inc., Tuya, VNET Group, Weibo Corp. (ADR), Weibo Corp. (H), Weimob, Xiaomi Corp.
The rating(s) for ASMPT, Compal, Eoptolink, Foxconn Industrial Internet, Gigabyte, Innolight, Inventec, Lenovo, Pegatron, Quanta, Wistron and
Wiwynn is/are relative to the other companies in its/their coverage universe: AAC, ACM Research, AMEC, ASMPT, AccoTest, Anji Micro, Anlogic,
Arcsoft, Asus, Awinic, BOE, BYDE, Bestechnic, CFME, CR Micro, Cambricon, China Mobile (HK), China Telecom, China Tower Corp., China Unicom,
China United Network Comm, Chinasoft Intl, Compal, Dahua, Desay SV, E Ink, EHang, Empyrean, Eoptolink, Espressif, Etek, Everbright Photonics,
Fiberhome, Fositek, Foxconn Industrial Internet, GalaxyCore, Gigabyte, Gigadevice, Glodon Co., Goodix, HG Tech, HTC Corp., Hengtong, Hikvision,
Hirain, Hon Hai, Hua Hong, ISoftStone, Innolight, Inventec, JCET, Jingce, KFMI, King Slide, Kingdee, Kingsemi, Kingsoft Office, Largan, Lenovo,
Longsys, Luxshare, Maxscend, Montage, NAURA, NSIG, Novosense, O-film, Pegatron, Primarius, Quanta, Ruijie, SG Micro, SICC, SMIC (A), SMIC (H),
Sanan, Sangfor, Shennan Circuits, Silan, SinoWealth, StarPower, Sunny Optical, TFC Optical, Thundersoft, Thunisoft, Tongfu, Transsion, USI, Vanchip,
Venustech, VeriSilicon, Will Semi, Wistron, Wiwynn, YJ Semitech, YJK, YOFC (A), YOFC (H), Yonyou, ZTE (A), ZTE (H), ZWSOFT, iFlytek
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The rating(s) for NEXTDC Ltd is/are relative to the other companies in its/their coverage universe: Carsales.Com, Domain Holdings Australia
Ltd., Megaport Ltd., NEXTDC Ltd, News Corp., Nine Entertainment Co., PEXA Group, REA Group, SEEK, Seven West Media, SiteMinder, Spark New
Zealand, TPG Telecom Ltd., Telstra Group, WiseTech Global, Xero Ltd., oOh!Media Ltd.
The rating(s) for MYR Group is/are relative to the other companies in its/their coverage universe: Baker Hughes Co., ChampionX Corp., Chart
Industries, Expro Group Holdings NV, Halliburton Co., Helmerich & Payne Inc., Liberty Energy Inc., MYR Group, MasTec Inc., NOV Inc., Patterson-UTI
Energy Inc., Quanta Services, SLB, Weatherford International Ltd.
The rating(s) for ABB Ltd., Legrand, Schneider Electric and Siemens AG is/are relative to the other companies in its/their coverage universe:
ABB Ltd., Accelleron Industries Ltd., Airbus, Alfa Laval, Alstom, Ariston Holding, Assa Abloy B, Atlas Copco, BAE Systems, CNH Industrial, Carel
Industries SpA, Daimler Truck Holding, Dassault Aviation, Epiroc, FLSmidth & Co., GVS, Geberit Holding, IMI Plc, Iveco Group, KONE Corp.,
Konecranes, Legrand, Leonardo SpA, MTU Aero Engines, Metso, NKT A/S, Nexans, Petrofac, Prysmian, Rexel S.A., Rheinmetall, Rolls-Royce, SKF,
Safran, Sandvik, Schindler Holding, Schneider Electric, Siemens AG, Signify NV, Smiths Group, Thales, Traton, Volvo Group, Wartsila, Weir Group
The rating(s) for CTP N.V., Merlin Properties Socimi SA, SEGRO Plc and Tritax Big Box is/are relative to the other companies in its/their
coverage universe: AEDAS Homes, Aroundtown SA, Big Yellow, British Land, CTP N.V., Castellum, Colonial Inmobiliaria, Covivio, Derwent London,
Entra ASA, Fabege AB, Gecina, Grand City Properties, Great Portland Estates, Hammerson, Icade, Klepierre, Kojamo Oyj, LEG Immobilien SE, Landsec,
Merlin Properties Socimi SA, SEGRO Plc, Supermarket Income REIT Plc, Tritax Big Box, Unibail-Rodamco-Westfield, Vonovia
The rating(s) for Prologis Inc. is/are relative to the other companies in its/their coverage universe: Apartment Income REIT, AvalonBay
Communities Inc., Boston Properties Inc., Brixmor Property Group, Broadstone Net Lease Inc., Camden Property Trust, Equity Residential, Essex
Property Trust Inc., Extra Space Storage Inc., First Industrial Realty Trust, Gaming and Leisure Properties Inc., Hudson Pacific Properties Inc., Kilroy
Realty Corp., Kimco Realty Corp., Macerich Co., Mid-America Apartment Communities, Phillips Edison & Co., Prologis Inc., Public Storage Inc., SL
Green Realty Corp., Safehold Inc., Simon Property Group, Tanger Inc., Terreno Realty Corp., UDR Inc., VICI Properties Inc., Vornado Realty Trust
14 March 2024 20
Distribution of ratings/investment banking relationships
Exhibit 1:
Regulatory disclosures
Ratings, coverage universe and related definitions
Buy (B), Neutral (N), Sell (S) Analysts recommend stocks as Buys or Sells for inclusion on various regional Investment Lists. Being assigned a Buy or
Sell on an Investment List is determined by a stock’s total return potential relative to its coverage universe. Any stock not assigned as a Buy or a Sell on
an Investment List with an active rating (i.e., a stock that is not Rating Suspended, Not Rated, Coverage Suspended or Not Covered), is deemed
Neutral. Each region manages Regional Conviction lists, which are selected from Buy rated stocks on the respective region’s Investment lists and
represent investment recommendations focused on the size of the total return potential and/or the likelihood of the realization of the return across their
respective areas of coverage. The addition or removal of stocks from such Conviction lists are managed by the Investment Review Committee or other
designated committee in each respective region and do not represent a change in the analysts’ investment rating for such stocks.
Total return potential represents the upside or downside differential between the current share price and the price target, including all paid or
anticipated dividends, expected during the time horizon associated with the price target. Price targets are required for all covered stocks. The total
return potential, price target and associated time horizon are stated in each report adding or reiterating an Investment List membership.
Coverage Universe: A list of all stocks in each coverage universe is available by primary analyst, stock and coverage universe at
https://www.gs.com/research/hedge.html.
Not Rated (NR). The investment rating, target price and earnings estimates (where relevant) have been suspended pursuant to Goldman Sachs policy
when Goldman Sachs is acting in an advisory capacity in a merger or in a strategic transaction involving this company, when there are legal, regulatory
or policy constraints due to Goldman Sachs’ involvement in a transaction, and in certain other circumstances.
Rating Suspended (RS). Goldman Sachs Research has suspended the investment rating and price target for this stock, because there is not a
sufficient fundamental basis for determining an investment rating or target price. The previous investment rating and target price, if any, are no longer
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Coverage Suspended (CS). Goldman Sachs has suspended coverage of this company. Not Covered (NC). Goldman Sachs does not cover this
company. Not Available or Not Applicable (NA). The information is not available for display or is not applicable. Not Meaningful (NM). The
information is not meaningful and is therefore excluded.
Regulatory disclosures
Disclosures required by United States laws and regulations
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14 March 2024 23

Thematic Stock Exposures - The Data Center Ecosystem

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14 March 2024 | 2:58PM GMT

The data center ecosystem

COMPUTE AND MEMORY

NETWORKING AND CONNECTIVITY

SERVERS, STORAGE AND SUPPORT

Europe industrials: ABB; Siemens; Legrand; Schneider Electric

Nvidia | NVDA | Buy, on CL

Advanced Micro Devices | AMD | Buy

ARM Holdings | ARM | Buy

Growing data center contribution to royalty revenue growth supports higher

Intel | INTC | Sell

TSMC | 2330.TW | Buy, on CL

Advanced packaging demand and AI revenue contribution upgrade add to strong

SK Hynix | 000660.KS | Buy, on CL

Micron Technology | MU | Buy

Samsung Electronics | 005930.KS | Buy

Cyclical recovery in memory and HBM growth boost proﬁtability outlook

Ibiden | 4062.T | Buy

Highest-quality ABF substrate supplier set to ride AI data center growth

Unimicron Technology | 3037.TW | Buy

Broadcom | AVGO | Buy

with a second U.S.-based hyperscale customer in custom compute. That’s in addition to

Marvell Technology | MRVL | Buy

Strength in data center connectivity with fast-growing custom compute franchise

Credo Technology Group | CRDO | Buy

Broadening US hyperscaler customer base adds momentum for data center

Arista Networks | ANET | Buy

The leading branded provider of switches to US hyperscalers including Meta and

Cisco Systems | CSCO | Neutral

AI networking progress encouraging but corporate spending slowdown weighs on

Hewlett Packard Enterprise | HPE | Not Rated

Juniper acquisition strengthens AI capabilities and boosts TAM in data center

Amphenol | APH | Buy

Leading connectors company well-positioned to capitalize on fast-growing AI

key supplier of reliable, high-performing electronics for a fast-growing end market, in

TE Connectivity | TEL | Buy, on CL

Higher dollar content for AI applications adds to long-term revenue growth

Innolight | 300308.SZ | Buy

AI exposure supports strong growth outlook for China’s leading optical

Eoptolink | 300502.SZ | Buy

Servers, Storage and Support

AI servers emerging as key driver of long-term growth and earnings power

Super Micro Computer | SMCI | Neutral

SMCI, a specialized supplier of high-performance server and storage systems, has

Flex | FLEX | Buy

Rise of hyperscale data centers in revenue mix adding to earnings growth

business mix is contributing to higher margins and more resilient earnings.

Jabil Circuit | JBL | Buy

Seagate Technology | STX | Neutral

Encouraging progress on HAMR commercialization at US hyperscalers

Foxconn Industrial Internet | 601138.SS | Buy

Elite Material | 2383.TW | Buy

Taiwan Union Technology | 6274.TWO | Buy

GCE | 2368.TW | Buy

Strong orders and backlog fuel long-term revenue growth trajectory

Vertiv’s opportunity from a high-density workload increases to ~$3mn-3.5mn per MW

nVENT Electric | NVT | Buy

Eaton | ETN | Buy

Data center construction adds to attractive exposure for US re-industrialization

Our team considers electrical systems manufacturer Eaton as one of the

Shenzhen Envicool Technology | 002837.SZ | Buy

China liquid cooling player with large order wins