HK Stock Market Move | ZTE Corporation (00763) rose by over 5% in early trading. The company is benefiting from the large-scale increase in domestic computing power, and its self-developed chip business is expected to be revalued.

ZTE Corporation (00763) rose more than 5% in early trading, up 4.08% as of press time, at 26.8 Hong Kong dollars, with a turnover of 7.01 billion Hong Kong dollars. Sinolink pointed out that with the intensification of the ban and the domestic internet companies led by Byte actively building computing power, it is expected that domestic computing power will see a substantial increase by 2025, directly benefiting domestic chip server manufacturing companies such as Chengdu Hi-Tech Development, ZTE Corporation, and Unisplendour Corporation. In addition, ZTE Microelectronics has gradually expanded from custom processors in the communication field to computing and acceleration area customized computing power chips, covering various specifications and applications. The self-developed Everest chip and Taihai chip provide high-performance and diversified computational acceleration hardware. The self-developed chip business is driving the company's valuation higher and opening up growth space. Minsheng Securities previously pointed out that Byte's AI at the edge is making initial efforts, collaborating with ZTE Corporation in the mobile phone business, participating in design and manufacturing, jointly redefining AI phones. This cooperation reshapes the company's consumer business imagination space; ZTE Microelectronics is China's second largest semiconductor design company after Huawei HiSilicon, with chip products for self-use continuously raising the company's gross profit margin, and has recently started shipping CPUs to internet giants. The bank expects ASIC chips to also have breakthroughs.