Lates News

CITIC Securities pointed out that the overall business performance of technology giants in the second quarter of 2025 was significantly better than the market's previously cautious expectations. The momentum of cloud business growth is also more significant, and the trend of AI application penetration rate increasing and the demand for computing power exceeding supply continues. The increase in free cash flow (FCF) brought by the "big and beautiful" tax reform bill in the United States collectively drives the upward revision of the overall capital expenditure (CAPEX) guidance for 2025. The outlook for CAPEX in 2026 is also more positive. We estimate that the year-on-year growth rates of global AI CAPEX in 2025/2026 are +64%/50% respectively. At the same time, we closely monitor the subsequent implementation of tariffs and their impact on the global macroeconomy, the monetization progress of AI in 2025H2, and the implementation of tax incentives under the "big and beautiful" tax reform bill, and other variables. In the AI computing power-related sectors, we continue to recommend sub-sectors such as commercial GPU, ASIC, storage (HBM & HDD), and network equipment.