ZTE(SZ:000063) Guan Cha Zhe Wang·2025-03-28 13:23Core Viewpoint - ZTE Corporation is strategically positioning itself to leverage opportunities in the AI sector, aiming to drive revenue growth through advancements in AI technology and infrastructure [2][3][4]. Group 1: AI Strategy and Market Opportunities - The global AI market is projected to exceed $860 billion in the next five years, with a compound annual growth rate (CAGR) of 32.19% [2]. - Major domestic telecom operators are expected to maintain over 20% growth in computing power investments by 2025, while leading internet companies will invest over 500 billion in AI over the next three years [2]. - ZTE aims to capitalize on AI advancements across four dimensions: communication infrastructure, computing power infrastructure, industry applications, and AI endpoint solutions [3][4]. Group 2: AI Product Development - ZTE is increasing investment in AI mobile phone development and brand channel resources, aiming to penetrate various personal and household scenarios [3][4]. - The company plans to enhance its AI product offerings, including AI smartphones and smart home devices, to create a comprehensive AI ecosystem for consumers [6][7]. Group 3: Infrastructure and Technological Innovation - ZTE's long-term strategy focuses on "connection + computing power," leveraging nearly 40 years of experience in the DICT field to provide comprehensive AI solutions [4][8]. - The company is enhancing its computing power infrastructure by optimizing hardware architecture and developing high-performance, low-power products through collaboration with industry partners [8]. Group 4: Challenges and Strategic Responses - In 2024, ZTE faces a challenge with domestic telecom operators' 5G investments declining by over 20%, leading to a 13% decrease in domestic operator market revenue [9][10]. - The company is exploring new business models and technological iterations to mitigate the impact of reduced capital expenditure from domestic operators [10].