Zheng Quan Shi Bao Wang·2025-08-21 05:43Core Viewpoint - ZTE Corporation's stock experienced a significant surge due to a recent research report highlighting the company's undervalued AI computing and network business progress, suggesting that AI could lead to a major transformation for ZTE [1] Group 1: Recent Developments - ZTE's A-shares hit the daily limit while H-shares rose over 14% on August 21, attributed to a report from Zheshang Securities [1] - The report emphasized ZTE's strategic position in the super node market, indicating that the company is expected to capture a significant share of the super node system, Switch Tray, and internal interconnect chips [1] - ZTE won major contracts in a recent procurement by China Mobile for AI computing devices, securing approximately 70% of the largest contract worth around 8.85 billion RMB, marking it as a significant winner in the bidding process [1] Group 2: Financial Performance - ZTE's first-quarter report indicated rapid growth in server and storage revenue, particularly in intelligent computing servers, which captured over 60% of orders due to increased demand from major internet companies and operators [2] - The company has fully supported DeepSeek models in its intelligent integrated machine products, facilitating AI applications across various sectors including telecommunications, education, healthcare, and government [2] Group 3: Foreign Investment Interest - Foreign institutional investors have shown increasing confidence in ZTE, with BlackRock raising its stake from 5.81% to 6.32% and then from 6.98% to 7.43% within a short period [3] - Goldman Sachs projected a 12% quarter-on-quarter increase in ZTE's net profit for the second quarter, estimating it to reach 2.7 billion RMB, driven by rising demand for AI infrastructure and devices [3] - The anticipated revenue for ZTE in the second quarter is expected to grow by 12% year-on-year to 35.6 billion RMB, with a forecasted gross margin increase to 37.8% from 34.3% in the first quarter [3]