Zhaojin International: The technology sector is expected to continue outperforming the market, benefiting from the DeepSeek industrial chain.

Recently, CMB International released a report pointing out that benefiting from the recovery of global mobile/PC demand, domestic consumer electronics subsidies, DeepSeek catalyzing AI terminal penetration, and continued high growth in AI servers. CMB International expects the technology sector to continue outperforming the market and recommends two main themes: 1) DeepSeek and Apple Intelligence accelerate the promotion and implementation of AI on the terminal side, OpenAI announces the development of AI terminals, domestic subsidies stimulate demand, and global mobile/AI terminals are expected to enter a new upgrade cycle; 2) Server computing power demand remains high, GB200/300 servers/network new architecture upgrades further drive ODM and component demand. In terms of the industry chain, CMB International is optimistic about the mobile/AI terminal industry chain benefiting from domestic subsidy policies and DeepSeek/Apple Intelligence penetration; the MR industry chain benefits from the volume increase of AI smart glasses; the server industry chain benefits from the rebound of general servers and opportunities for GB200/300 new architecture upgrades. CMB International recommends paying attention to Xiaomi Group (01810), BYD ELECTRONIC (00285), FIT HON TENG (FIT HON TENG) (06088), AAC TECH (02018), Luxshare Precision Industry and SUNNY OPTICAL (02382).