Morgan Stanley: Extending 800V EV Technology into AI Data Centers
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Morgan Stanley highlights that Chinese 800V electric vehicle penetration increased from 5% in 2023 to 11% in 2025, fostering a robust high-voltage supply chain poised to expand into 800V direct-current AI data centers. The structural similarities between 800V EVs and AIDCs—both requiring elevated voltage to minimize current, cable sizing, and transmission losses—create compelling crossover opportunities.
Generic high-voltage components, specifically semiconductors and connectors, are best positioned for initial cross-application migration. However, automotive suppliers must overcome stringent certification barriers to meet AIDC requirements for continuous operation, high power density, hot-swapping capabilities, and near-zero downtime.
Consequently, Morgan Stanley double-upgraded Recodeal Systems (688800.SS) to Overweight, raising its target price from RMB 42.14 to RMB 121.00. Recodeal is successfully expanding from lower-margin EV connectors into AIDC interconnects like active electrical cables and power whips. These AI interconnect products are projected to contribute over 40% of its total revenue by 2027.
The report also identifies opportunities for Yangjie Tech (300373.SZ), a leading domestic power semiconductor supplier. Tier-1 suppliers like Joyson Electronics (600699.SS), which holds an RMB 22 billion 800V order backlog, could supply DC-DC converters and battery management systems, though automotive-grade products require redesign. BYD's (1211.HK) vertical integration and Keboda's (603786.SS) eFuse technology present additional pathways. US peers, including Aptiv, BorgWarner, Magna, and Lear, could similarly capitalize on this technological migration.
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