STOCKS | CITIC Securities Says It Still Favors U.S. Tech Stocks as AI Adoption Rises

CITIC Securities said it still favors the U.S. technology theme, citing rising AI adoption by U.S. companies and long-term trends in corporate technology investment. According to Jin10, a CITIC Securities research note said that as AI becomes more widely used, end users do not always choose the most compute-intensive or highest-performing models, and are often constrained by token-budget financial limits. The note said strong performance in computing-power hardware in the second quarter of this year was driven mainly by price increases rather than higher shipment volumes. It added that as market attention shifts from scarcity to sustainability, overseas markets represented by South Korean stocks have recently faced adjustments. CITIC Securities said computing power is not in surplus, and that the evolution of pricing power is becoming increasingly important. The firm said AI adoption among U.S. companies is rising, and that overall technology investment intensity across the corporate sector is consistent with long-term trends. It said market competition will push more companies to use AI to improve work efficiency, creating new demand for computing-power services, AI models, and applications. CITIC Securities said it currently prefers midstream and downstream segments of the overseas computing-power supply chain, and it also favors the attractiveness of U.S. stocks relative to Japanese and South Korean equity markets.