--- title: "\"Major Institutions\" China Merchants Securities: AI productivity is driving the differentiation in the technology industry, urging to increase holdings in Meta, Pinduoduo, and NetEase, etc" type: "News" locale: "en" url: "https://longbridge.com/en/news/273932160.md" description: "China Merchants Securities released a research report indicating that there will be significant sub-industry differentiation in the technology and internet sectors between the second half of 2025 and 2026. The long-term demand for AI infrastructure and robust capital expenditures will drive strong performance from the \"Seven Giants\" and technology hardware, while global consumer SaaS will face weakness. The report recommends increasing holdings in companies such as Meta, Pinduoduo, and NetEase, and looking for selective layout opportunities in the consumer SaaS sector" datetime: "2026-01-28T03:05:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273932160.md) - [en](https://longbridge.com/en/news/273932160.md) - [zh-HK](https://longbridge.com/zh-HK/news/273932160.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/273932160.md) | [繁體中文](https://longbridge.com/zh-HK/news/273932160.md) # "Major Institutions" China Merchants Securities: AI productivity is driving the differentiation in the technology industry, urging to increase holdings in Meta, Pinduoduo, and NetEase, etc China Merchants International published a research report indicating that the technology and internet sectors will show significant sub-industry differentiation between the second half of 2025 and 2026. The "seven giants" and technology hardware will benefit from the long-term demand for AI infrastructure and robust AI capital expenditures, performing strongly. On the other hand, global consumer SaaS is experiencing synchronized weakness, with different companies facing various bottom-up issues. The report pointed out that market concerns about consumer prospects have intensified, leading to weakened revenue momentum and pressured profit margins. Against the backdrop of previously relatively high valuation multiples and limited incremental support from AI, these risks are further amplified. For Chinese companies lacking clear AI outcomes, stock prices continue to perform poorly, and valuation multiples remain low. Meanwhile, AI infrastructure companies are strengthening due to the attractiveness of capital expenditures and structural growth. The report remains optimistic about AI leaders and suggests looking for selective layout opportunities in the consumer SaaS sector after significant corrections. Chinese peers such as Pinduoduo (PDD.US), NetEase (09999.HK)(NTES.US), Kuaishou Technology (02076.HK), and Tencent Music (01698.HK)(TME.US) demonstrate robust growth, profitability, and valuation support, recommending to increase holdings in Alphabet (GOOG.US), Meta (META.US), Netflix (NFLX.US), Roblox (RBLX.US), Pinduoduo, NetEase, Kuaishou Technology, and Tencent Music ### Related Stocks - [Invesco S&P 500® Equal Weight Tech ETF (RSPT.US)](https://longbridge.com/en/quote/RSPT.US.md) - [Direxion Daily MSFT Bull 2X Shares (MSFU.US)](https://longbridge.com/en/quote/MSFU.US.md) - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/en/quote/NVDL.US.md) - [T-Rex 2X Long Microsoft Daily Target ETF (MSFX.US)](https://longbridge.com/en/quote/MSFX.US.md) - [iShares Expanded Tech-Software Sect ETF (IGV.US)](https://longbridge.com/en/quote/IGV.US.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [NetEase, Inc. (NTES.US)](https://longbridge.com/en/quote/NTES.US.md) - [KraneShares 2x Long PDD Daily ETF (KPDD.US)](https://longbridge.com/en/quote/KPDD.US.md) - [Invesco Semiconductors ETF (PSI.US)](https://longbridge.com/en/quote/PSI.US.md) - [The Technology Select Sector SPDR® ETF (XLK.US)](https://longbridge.com/en/quote/XLK.US.md) - [Direxion Daily NVDA Bull 2X Shares (NVDU.US)](https://longbridge.com/en/quote/NVDU.US.md) - [VanEck Semiconductor ETF (SMH.US)](https://longbridge.com/en/quote/SMH.US.md) - [GraniteShares 2x Long MSFT Daily ETF (MSFL.US)](https://longbridge.com/en/quote/MSFL.US.md) - [State StreetSPDRS&PSftwr&SvcsETF (XSW.US)](https://longbridge.com/en/quote/XSW.US.md) - [NTES-S (09999.HK)](https://longbridge.com/en/quote/09999.HK.md) - [Roundhill META WeeklyPay ETF (METW.US)](https://longbridge.com/en/quote/METW.US.md) - [Direxion Daily META Bull 2X ETF (METU.US)](https://longbridge.com/en/quote/METU.US.md) - [Microsoft Corporation (MSFT.US)](https://longbridge.com/en/quote/MSFT.US.md) - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [YieldMax MSFT Option Income Strategy ETF (MSFO.US)](https://longbridge.com/en/quote/MSFO.US.md) - [Meta Platforms, Inc. (META.US)](https://longbridge.com/en/quote/META.US.md) - [Global X E-commerce ETF (EBIZ.US)](https://longbridge.com/en/quote/EBIZ.US.md) - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/en/quote/NVDY.US.md) - [GraniteShares 2x Long META Daily ETF (FBL.US)](https://longbridge.com/en/quote/FBL.US.md) - [Global X Cloud Computing ETF (CLOU.US)](https://longbridge.com/en/quote/CLOU.US.md) - [GraniteShares 2x Long PDD Daily ETF (PDDL.US)](https://longbridge.com/en/quote/PDDL.US.md) - [T-REX 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/en/quote/NVDX.US.md) ## Related News & Research - [Tech Wrap March 30: OPPO Find X9 Ultra, WhatsApp on CarPlay, Blaupunkt](https://longbridge.com/en/news/281041030.md) - [China Vows to Support Cross-Border Deals Following Meta's Manus Buyout](https://longbridge.com/en/news/281606199.md) - [Meta integrated ai into the core of its risk review program - website](https://longbridge.com/en/news/281190495.md) - [Draft IT regulations may widen govt oversight on social media content](https://longbridge.com/en/news/281133616.md) - [Govt proposes to bring independent news creators under MIB purview](https://longbridge.com/en/news/281049326.md)