Core Viewpoint - ZTE Corporation has reported a double-digit revenue growth in its semi-annual report, indicating a strategic shift towards "connection + computing power" amidst a challenging global telecom equipment market, with AI playing a crucial role in this transformation [1][2]. Revenue Growth - In the first half of 2025, ZTE achieved revenue of 71.55 billion yuan, marking a year-on-year increase of 14.5%, with second-quarter revenue and net profit both showing growth compared to the first quarter [1]. - The revenue gap between ZTE and Nokia has narrowed to 5%, approximately 3.5 billion yuan, suggesting a potential for ZTE to surpass Nokia in the near future [2]. Strategic Development - ZTE's "connection + computing power" strategy has allowed the company to diversify its revenue streams, with computing power and terminal revenues growing nearly 100% year-on-year, now accounting for over 35% of total revenue [1][3]. - The company has maintained its market share in traditional operator network business while expanding into future technology areas such as 5G-A and 10G access, thereby stabilizing its revenue base [3]. AI Integration - ZTE has integrated AI into its network and computing infrastructure, enhancing product competitiveness and establishing a comprehensive AI empowerment system [5]. - The company has filed nearly 5,500 AI-related patents globally, with about 50% granted, indicating a strong commitment to innovation [5]. Market Opportunities - The AI infrastructure market is projected to grow significantly, with capital expenditures expected to remain strong, and the AI hardware and software market anticipated to grow at an annual rate of 40%-55% [4]. - Major tech companies are increasing their investments in AI infrastructure, with Google, Microsoft, Amazon, and Meta expected to spend over $300 billion by 2025 [4]. Product Development - ZTE has launched various AI-integrated products targeting both individual consumers and enterprises, including smartphones and AI home devices, while also developing solutions for over 18 vertical industries [7]. - The company has achieved significant sales milestones, such as over 1 million units of its cloud computer and a 70% market share in operator services [3][7]. Challenges and Strategies - ZTE faces challenges similar to other companies, including pressure on profit margins due to intense competition in the computing power market [8]. - The company plans to enhance revenue scale in computing products, increase self-research ratios, and shift from single product sales to comprehensive solutions to improve profit margins [8].