Shengang Securities·2025-02-27 15:04Investment Rating - The report maintains an "Overweight" rating for the electronic industry [5]. Core Insights - Domestic capital expenditure on computing power is expected to accelerate, driven by the continuous iteration of AI large models, which supports confidence in hardware investment [2][3]. - Alibaba plans to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years, surpassing the total of the past decade, marking the largest investment by a private enterprise in this sector in China [3][4]. - The global cloud infrastructure service expenditure is projected to grow by 20% year-on-year in Q4 2024, reaching 86 billion USD, with AI model expansion being a key driver [4][30]. Market Performance - The Shenwan Electronics Industry Index rose by 6.96% from February 17 to 21, outperforming the CSI 300 Index by 5.96% [1][10]. - In the same period, sub-sectors such as digital chip design and semiconductor equipment showed strong performance, with respective increases of 9.82% and 9.26% [17][20]. Capital Expenditure Trends - The CAGR for capital expenditure among the four major overseas cloud providers is expected to reach 50.6% from 2023 to 2025 [4][29]. - Domestic cloud providers are anticipated to follow suit in enhancing their cloud and AI hardware infrastructure, potentially matching the rapid growth rates of foreign counterparts [30]. Investment Opportunities - The report suggests focusing on AI-driven demand and domestic substitution logic within the AI industry chain and related consumer electronics, highlighting companies such as Haiguang Information, Zhongke Shuguang, and others [5]. - It also emphasizes the potential for investment in domestic computing power chips, AI servers, and advanced process wafer foundries due to increasing AI demand [30].