HK Stock Market Move | ZTE Corporation (00763) rose by over 4% again, with an increase of over 50% in the past two months. The self-developed chip business is driving up the company's valuation.

ZTE Corporation (00763) has surged more than 4% again, with a cumulative increase of over 50% since early December. As of the time of writing, it has risen by 3.44% to HK$28.55, with a trading volume of HK$7.52 billion. In terms of news, according to media reports, ByteDance plans to invest $12 billion in artificial intelligence chip research and procurement by 2025. Minsheng Securities previously pointed out that ByteAI is making initial efforts on the edge, collaborating with ZTE Corporation in the mobile phone business to redefine AI phones together. This cooperation reshapes the company's consumer business imagination space; ZTE Microelectronics is a domestic semiconductor design company second only to Huawei HiSilicon, continuously increasing the company's gross profit margin with self-use chip products. It has recently started shipping CPUs to internet giants, and the bank expects ASIC chips to also break through. Sinolink pointed out that ZTE Microelectronics has gradually developed from custom processors in the communication field to custom computing generalization + accelerator domain customized computing power chips, covering a variety of specifications and applications. Self-developed Everest and Taihai chips provide high-performance, diverse computing acceleration hardware. The self-developed chip business provides impetus for the company's valuation enhancement and opens up growth opportunities.