Galaxy Securities: We recommend focusing on leading computing power leasing companies.
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CITIC Securities: Significant fluctuations will not alter the AI supercycle; emphasize the importance of domestic computing power as a "Plan B".
According to Mars Finance, CITIC Securities points out that news of Meta's plan to lease out some of its computing power has once again triggered market concerns about computing power oversupply. This, coupled with concerns about cloud vendors' cash flow pressures, the continued rise in upstream prices, the slowdown in Capex growth, and overcrowding in AI transactions in recent months, is the main reason for the significant volatility in tech stocks. In the short term, Meta's move is primarily aimed at revitalizing its existing, outdated computing power assets. Considering its continued development of advanced models and investment in next-generation computing hardware, leasing out computing power is not contradictory to further increasing its investment in computing power. Furthermore, since computing power rental fees have continued to rise recently, concerns about computing power oversupply are unfounded. This round of tech stock adjustments is more of a deleveraging and rebalancing process in the recent global liquidity tightening environment, rather than a reversal of the AI industry trend. For the medium to long term, it is crucial to pay close attention to whether the next few months will see a similar breakthrough in AI capabilities as seen with OpenClaw and Coding Agent at the beginning of the year. In addition, it has been observed that after overseas AI assets entered a phase of high crowding, high correlation, and high volatility, international funds are beginning to seek differentiated sources of return. Domestic computing power with differentiated value, dubbed "Plan B," remains resilient and is expected to attract foreign investment. With the earnings season approaching, we recommend focusing on sub-sectors with high earnings certainty and reasonable valuations: In terms of growth prospects, we recommend domestic FAB (Featured Adhesives and Materials) and equipment sectors with positive narratives, as well as the optical communication sector with relatively low valuations; in the price increase chain, segments with high AI exposure and those that have already experienced price increases have a higher probability of realizing their earnings gains, such as memory and upstream PCB industries. (Cailian Press)
Everbright Securities: Meta computing power leasing is a resource optimization method and does not change the medium-to-long-term expansion plan.
According to Odaily Odaily, Meta is venturing into external computing power leasing. A recent research report from Everbright Securities states that Meta's underlying logic for entering the cloud computing market is to create a new monetization channel for its massive AI infrastructure investments. This reflects that cloud computing is currently the fastest and most reliable way to recover huge upfront investments and improve current returns. It also indicates that the ability to monetize externally has become a cash flow guarantee for Meta to continue expanding its AI investments. Meta's overall plan to continuously increase its investment in AI computing power in the medium to long term has not changed. (Jinshi)
Industrial Securities: The news regarding Meta's external leasing and sales of computing power should not be interpreted overly pessimistically as a sign of computing power surplus.
According to Mars Finance, on Wednesday, news that Meta plans to sell its surplus AI computing power triggered a sharp correction in global AI hardware and high-flying technology stocks. Xingye Securities believes that the news regarding Meta's external leasing and sale of computing power should not be interpreted overly pessimistically as a surplus of computing power/a comprehensive slowdown in Capex, because (1) this is not new news; there were related reports in May of this year; (2) Meta is a special case among hyperscalers; its toC-oriented business means its AI monetization capabilities mainly rely on advertising, and its exploration of cloud business can improve shareholder returns and cash flow; (3) Meta still has a computing power gap; this week, it was just reported that Google restricted its access and Meta signed an agreement with Crusoe; (4) hardware demand comes from inference, not from inflation on the training side. (Cailian Press)
The computing power leasing concept rebounded after fluctuations, with Wangsu Science & Technology rising nearly 15%.
According to Mars Finance, the computing power leasing concept stocks rebounded in early trading, with Wangsu Science & Technology rising nearly 15%, followed by Sangfor Technologies, Cloudwalk Technology, UCloud, Aofei Data, and Xiechuang Data. Galaxy Securities believes that computing power leasing companies are currently exploring a "token factory" cooperation model with large-scale model providers, gradually evolving from the underlying "selling resources" model to a "selling output" model. Computing power leasing companies will provide MaaS services and share the benefits of the token boom through a token-sharing profit model. (Cailian Press)
CITIC Securities: The main theme of domestic computing power is clear; leading companies' performance is expected to accelerate.
According to a research report by CITIC Securities, as reported by Mars Finance, the capabilities of domestic computing power systems have evolved from inference to training. With the official release of DeepSeek V4 in mid-July, a "peak-valley pricing" mechanism will be introduced, doubling the price of API calls during peak periods, further intensifying the supply constraints of domestic computing power. We believe that the clarity of domestic computing power orders has significantly improved at this stage, and design companies with priority in customer order and capacity allocation are expected to benefit first. We remain optimistic about the domestic computing power industry chain, anticipating significant growth opportunities for everything from scarce advanced process capabilities to a thriving design sector and supernodes. Meanwhile, advanced processes, advanced packaging, advanced storage, and related supply chains are expected to experience strong growth momentum. (Cailian Press)
The concept of computing power leasing continues to rise, with multiple stocks, including YunSai Zhilian, hitting the daily limit.
According to Mars Finance, the computing power leasing concept continues to rise, with YunSai Intelligent Link and DataPort hitting the daily limit. Previously, Wangsu Science & Technology, Hengwei Technology, Nanxing Shares, and 263 had also hit the daily limit, while Sangfor Technologies and Feilixin both rose by more than 14%. (Cailian Press)