Morgan Stanley Fund Manager Lei Zhiyong: Technology sector relatively optimistic in 2025, artificial intelligence growth still rapid.

On January 17, at the Morgan Stanley Fund Annual Strategy Meeting, the 2024 public offering champion, Lei Zhiyong, shared his views on the general technology trend in 2025, particularly on artificial intelligence. He stated that the general technology sector in 2025 is relatively optimistic, and the market trend seen in 2014-2015 may reappear, with a potential increase in valuation for the entire technology sector following mergers and acquisitions. In comparison with all industries, artificial intelligence is still the fastest-growing segment in 2025, and its valuation has not yet become overinflated. Looking at both overseas technology giants and domestic internet giants, the demand for computing power remains strong and has not diminished. Lei Zhiyong predicts that looking ahead to 2025, the market trend seen in 2014-2015 may reappear, with a potential increase in valuation for the entire technology sector following mergers and acquisitions. He believes that the policy, liquidity, and style activity brought about by mergers and acquisitions will be significant factors for the technology sector in 2025. From an industry perspective, technology growth has entered a major innovation cycle. Globally, it is evident that AI has brought about iterative innovations in both B2B and B2C products. Whether it is office applications in the B2B sector or consumer electronics in the B2C sector, Lei Zhiyong believes that the next two years will be part of a major innovation upswing. In terms of the industry cycle, the valuation of the technology sector can at least remain stable and may even increase with the emergence of major hit products. Select sectors within the general technology sector that are experiencing performance growth and companies with appropriate valuations. In 2025, areas such as artificial intelligence, national defense military industry, wind power, and consumer electronics are on the rise structurally, presenting opportunities. He emphasizes being "relatively optimistic" due to remaining uncertainties. Firstly, uncertainties exist regarding tariff policies and national fiscal policies, as well as whether real estate prices can stabilize, which could disrupt the market. Secondly, uncertainty also arises from the industry itself. AI has been on the rise for two years, including in the US stock market and in A-shares. At this point, there is debate in the market about whether AI can truly achieve general artificial intelligence. Overall, there are investment opportunities in the field of computing power in the first half of 2025, and there will be some structural changes. In the future, AI will penetrate all industries, with a key challenge being cost reduction and efficiency improvement. Therefore, there will be many innovations surrounding AI in the future, similar to the innovation of components like the camera, frame, and glass in the iPhone's development. By 2025, new innovations may be seen in various areas such as connectivity technology, general and customized computing, data centers, and power solutions, bringing investment opportunities. Additionally, in terms of applications, there will be many AI application innovations overseas (especially in the United States) in 2025. Particularly in the field of end-side applications, this will drive up valuations in related application areas in A-shares. A-shares themselves possess strong industrial chain capabilities in the end-side, so global AI end-side innovations will involve the participation of local enterprises. Therefore, whether in computing power, associated computing power, or application directions, Lei Zhiyong believes that there are many promising aspects in the AI industry in 2025.