AI TRENDS | Huatai Securities Highlights Market Misjudgments in Electrification

On June 1, Jin10 reported that Huatai Securities released a research report indicating three major market misjudgments regarding electrification. According to Jin10, the first misjudgment is that while the AI industry chain has shown impressive performance since April, the pricing in electrification-related fields may still be insufficient despite internal and external catalysts. The second misjudgment is that investors might be underestimating the potential for electrification in China. This is due to a focus on 'new penetration rates' while overlooking the replacement demand in the 'existing stock structure' and blind spots in electrification scenarios. The third misjudgment involves a shift from last year's 'anti-involution' to this year's 'computing-electricity synergy,' with policy-driven revaluation of factor prices and industry space, potentially leading to sustained improvements in related fields' prosperity and performance. In terms of investment, Huatai Securities suggests focusing on opportunities in lithium batteries/energy storage, mining machinery, forklifts, commercial vehicles, and ships.