Today, two major pieces of news emerged in China's AI field, which can be described as "twin stars shining bright."
First, Alibaba has launched a brand new inference model,which is comparable to DeepSeek R1 with only 1/20 of the parameters; second,Manus Agent made a stunning debut, becoming the world's first true Universal AI Agent.The market generally believes that as AI technology is implemented, the revaluation of China's Technology assets by the Capital Markets has just begun.
The arrival of the Agent era means that AI will shift from being an auxiliary tool to a productivity engine, reconstructing traditional industries far more than expected.
It is worth noting that in the race for Technology competition, capital expenditure is the 'fuel' for enterprises.
In 2025, the global Technology industry is witnessing an unprecedented "money feast"—Amazon is spending hundreds of billions of dollars, Meta bets 65 billion dollars, and Alibaba will invest over 380 billion yuan in the next three years... Behind these astronomical figures is a "life-and-death race" surrounding the future of AI.
Alibaba previously announced that it will invest over 380 billion yuan in the next three years to build cloud and AI Hardware infrastructure, which exceeds the total investment of the past decade. The market expects that driven by the leaders, other manufacturers may follow suit.
According to Huachuang Securities, with the increasing demand for computing power, Tencent is expected to increase its capital expenditures in the AI field, although specific details need to wait for Tencent to clarify at the Earnings Conference around March. Due to ByteDance not being publicly listed, relevant financial data is difficult to obtain. Considering the growing traffic of Doubao, increasing AI investment is necessary.
Which companies are likely to benefit?
According to Keda Securities, the domestic AI computing power industry chain may encounter golden industrial opportunities, with a representative emphasis on AI cloud computing resources' scarcity, such as Alibaba Cloud, TENCENT Cloud, Huawei Cloud, Volcano Cloud, Tianyi Cloud, Mobile Cloud, and Unicom Cloud, which may gradually increase.
The bank is optimistic about four major industrial directions: AIDC Datacenter Construction (AIDC Datacenters, Diesel Generators, Air Cooling & Liquid Cooling, etc.), IT Side (domestic computing power chips, Servers, and Power Supplies), Network Side (Switches and Chips, Optical Communications, AEC Copper Connections, CDN, etc.), and Cloud Computing (Public Cloud, Private Cloud, Computing Power Leasing).
Futu News has compiled a list of some Chinese enterprises listed in Hong Kong and the US stock markets for mooer references:
Specifically looking at,
The construction of the AIDC Datacenter includes,
AIDC Datacenter$GDS Holdings (GDS.US)$ / $GDS-SW (09698.HK)$ 、 $21Vianet (VNET.US)$ 、 $SUNEVISION (01686.HK)$ 。
Daiwa published a research report indicating that channel research shows GDS Holdings obtained about 140 megawatts of orders from Alibaba for the Langfang Datacenter in the first quarter of this year, with new orders accounting for approximately 15% of GDS's utilized capacity. This also reflects the growing demand for computing in core cities, which is expected to drive revenue growth beyond expectations by 2026. It is confident that, with various enterprises committing to increase investments in Cloud Computing, GDS has the opportunity to secure more new orders from other Internet companies, capitalizing on the industry demand growth trend in the coming one to two years. Daiwa has raised GDS's target price to HKD 46.
Recently, multiple Institutions have consistently been bullish on 21Vianet, believing the company is undervalued and significantly raising its target price. UBS Group had previously listed 21Vianet as a preferred choice among Chinese Datacenter companies, raising its target price to $25 this time; Nomura Securities gave the company a Buy rating, raising the target price to $20.1; Jefferies Financial raised the target price to $20.6 and continues to list 21Vianet as one of the preferred stocks in China's AI supply chain.Morgan Stanley has also clearly expressed optimism about China's Internet Data Center (IDC) Sector, stating that REITs provide onshore financing channels for IDC, helping them deleverage and raise future capital expenditures, while also providing valuation Indicators for IDC assets. The valuation multiples for private REITs have reached 10 to 13 times, which will trigger a market recalibration. Therefore, Morgan Stanley has raised the target prices for GDS and 21Vianet, while SUNEVISION is a standout in the Hong Kong Datacenter field and is also one of the options that the institution has long identified.
Upstream Diesel Generator. $China Yuchai International (CYD.US)$ 、 $WEICHAI POWER (02338.HK)$ 。
GTJA Securities states that the high prosperity of domestic AIDC and Datacenter construction continues to benefit from the strong demand for high-end diesel Generators.
HAITONG SEC published a research report stating that as a leading domestic diesel engine company, Weichai has a scale advantage in the development of AIDC diesel power. There is a Bullish outlook on AIDC diesel power driving the company's performance growth.
The network side includes:
Global leader in the fiber optic cable industry $Yangtze Optical Fibre And Cable Joint Stock (601869.SH)$
The development of AI has led to increased demand for computing power, and the domestic digital economy is entering a new era centered on computing power. High-capacity, long-distance, and low-latency optical transmission technologies are being more widely applied, which will become the main driving force behind the growth of fiber optic cable demand in the medium to long term.
Cloud Computing includes,
The three major telecommunications operators. $CHINA MOBILE (00941.HK)$ 、 $CHINA TELECOM (00728.HK)$ 、 $CHINA UNICOM (00762.HK)$ and $BABA-W (09988.HK)$ 、 $TENCENT (00700.HK)$ 、 $BIDU-SW (09888.HK)$ And;
The IT side includes:
Chip $SMIC (00981.HK)$ 、 $HUA HONG SEMI (01347.HK)$ and Server $ZTE (00763.HK)$ 。
In addition, previously Futu News "DeepSeek Open Source Week Day 1 Makes a Big Move! It is expected to further catalyze AI + themes, these Hong Kong stocks may attract attention."It has been written that as the popularity of DeepSeek grows, various industries including AI applications, telecommunications and equipment, and intelligent driving are being heavily favored by capital. Interested mooers can click to view.
With the launch of Manus, the market believes that if it is also open-sourced subsequently, it will be bullish for the domestic AI intelligent agent industry chain, equalizing AI applications while accelerating AI empowerment of traditional industries, and also reconstructing the valuation of domestic application software.
What do institutions think?
West Securities' research report points out that large models are reshaping the technical architecture, service model, charging model, and application ecosystem for cloud vendors. DeepSeek has accelerated this reshaping process, adjusting the focus of cloud vendors' computing power services while also potentially expanding downstream market demand, prompting cloud vendors to increase investment in AIDC infrastructure.
The institution further stated that for the public cloud infrastructure Industry Chain, the demand for inference computing power is expected to accelerate growth, driving the domestic AIDC's accelerated construction and the penetration process of domestic cards represented by Ascend cards, which is bullish for suppliers at all levels of the Industry Chain.
In addition, some institutions have pointed out that the three keywords of DeepSeek: 'low cost' + 'high performance' + 'open source', are triggering a chain reaction in the global technology market: The rise of DeepSeek will drive global technology investment focus from 'stacking computing power' to 'algorithms + data + computing power' coordinated development, moving the AI industry from an 'arms race' to a 'scene landing' stage, resulting in an explosive increase in total demand for computing power, and a systemic re-evaluation of the value system in the computer industry.
BOC International's Research Reports pointed out that the launch of the DeepSeek large model is expected to become a catalyst for accelerating the landing of AI applications. This open-source model, which matches the performance of GPT while significantly reducing costs, will be a boon for downstream application developers, accelerating commercialization and profitability.
In the Research Reports, BOC International focused on vertical AI fields such as Medical, Corporate Services, Education, Office, Finance, and Marketing. These fields have features such as clear application scenarios, easily verifiable business models, low investment costs in the industry chain, and high-frequency demand from users, making them more likely to achieve commercialization first.
Editor/Somer
