On January 7, Glonghui reported that Jefferies Financial pointed out that although ZTE's stock price has adjusted by 50% from the increase since December 13 of last year, the market's expectations for the company regarding AI may still be too high. ZTE's subsidiary, ZTE Microelectronics, lacks experience in AI Chip design, and most of its revenue comes from internal Business. Therefore, the firm believes that the market's expectation that ZTE will benefit from the growth of AI-specific application integrated circuits (ASIC) is unrealistic. The firm states that due to Hardware limitations, AI Smart Phones have not yet become popular, so even if ByteDance allows ZTE to install AI on its Smart Phones, the situation will persist. Moreover, the firm believes that ZTE's valuation is not expensive, but since over 60% of the company's revenue comes from Communication Equipment, and capital expenditure from telecom operators has peaked, it means that ZTE's profit prospects remain weak. The firm has lowered its earnings forecasts for ZTE in 2024 and 2025 below market expectations, and has raised its Target Price from HKD 17.94 to HKD 18.58, with a rating of "Hold".