Xin Lang Cai Jing·2026-03-05 00:56Core Viewpoint - The report from CITIC Securities indicates that while U.S. cloud vendors have collectively increased their capital expenditures (Capex), concerns regarding capital return rates and cash flow have intensified, putting pressure on certain cloud services and SaaS sectors. The focus of narratives and valuations is shifting towards computing power, advanced processes, equipment, storage, CPO, and liquid cooling [1] Group 1 - The demand for computing power is expected to continue exceeding expectations both overseas and domestically, leading to sustained prosperity and price increases in upstream sectors, which is seen as the most certain mainline for "growth" in the current technology sector [1] - Recent developments from overseas companies like OpenAI and Anthropic are driving demand for cloud computing power and tokens beyond expectations, with competition in large models leading to growth in both inference and training, while CSPs continue to revise their investments [1] - Despite the positive outlook for upstream performance growth, there remain variables concerning ROI and cash flow [1] Group 2 - Domestic large models are rapidly iterating, with models such as GLM-5, KIMI K2.5, and Seedance 2.0 gradually closing the gap with overseas counterparts, with some models achieving usability and price increases in coding and video generation applications, reflecting extreme tightness in computing power [1] - Prices across the entire industry chain, from cloud services, tokens/APIs, to storage, advanced manufacturing, optical communication, liquid cooling, and electricity, are generally on the rise [1]