Understanding the Market | ZTE's stock price rose over 8% in early trading, reaching a new historical high again

According to Zhitong Finance APP, ZTE Corporation (00763) rose more than 8% in early trading, reaching a historical high of HKD 43.88. As of the time of publication, it was up 6.08%, trading at HKD 42.9, with a transaction volume of HKD 2.855 billion. In terms of news, Guosen Securities believes that ZTE is a globally scarce provider of end-to-end DICT communication equipment solutions, with products covering wireless, wired, cloud computing, terminal products, and professional communication services, operating in over 160 countries and regions. The company is committed to "becoming a leader in network connectivity and intelligent computing power" and is expected to benefit from AI development. In terms of computing power: large models continue to iterate, AI demand continues to grow, and major CSP cloud providers worldwide are increasing their investment in AI computing power infrastructure. It is expected that by 2025, overseas companies such as Amazon, Google, Microsoft, Meta, and Oracle will have a combined Capex exceeding USD 370 billion, with a year-on-year increase of over 60%; domestic companies like ByteDance, Tencent, Alibaba, and Baidu are expected to exceed CNY 360 billion in Capex, and China Mobile is expected to invest CNY 37.3 billion in computing power by 2025, with China Telecom and China Unicom's investments in computing power increasing year-on-year by 22% and 28%, respectively. According to data from the Communications Industry Network, ZTE's server market share in the telecom operator market is 21%, ranking first. In addition, the firm pointed out that the company has been developing its own chips for nearly 30 years and is one of the few domestic companies to mass-produce 7nm and introduce 5nm chips, providing one-stop design services from chip design to mass production. Currently, the company has developed its own 5nm process CPU chips and is planning the next generation of switching chips, forming a competitive data center supernode solution through years of accumulated network interconnection technology, compatible with different GPU/ASIC chips