HK Stock Market Move | ZTE Corporation (00763) is now up more than 6%, with the company developing diversified new businesses. Institutions say that ASIC chips are expected to break through.

ZTE Corporation (00763) is currently up more than 6%, rising by 6.28% to 25.4 Hong Kong dollars with a trading volume of 5.08 billion Hong Kong dollars as of the article's publication. Goldman Sachs released a research report stating that they are maintaining a "neutral" rating on ZTE Corporation, with a target price raised by 14.3% to 28.8 Hong Kong dollars from 25.2 Hong Kong dollars. The bank mentioned that despite the growth potential of ZTE Corporation in non-telecom sectors, they see short-term adverse factors due to the slowdown in capital expenditure by Chinese telecom companies in the middle to late stages of the 5G investment cycle. The bank remains optimistic about the growth potential of ZTE Corporation supported by diversified new businesses and continuous technological development. Minsheng Securities released a research report stating that ByteAI is making initial efforts on the edge, collaborating with ZTE Corporation in the mobile phone business, with the companies participating in design and manufacturing to redefine AI phones. This collaboration reshapes the company's consumer business imagination space; ZTE Microelectronics is the second-largest semiconductor design company in China after Huawei HiSilicon. The chip products for self-use continuously increase the company's gross profit margin, and recently, they have begun shipping CPUs to Internet giants. We expect that ASIC chips are also likely to break through.