AI TRENDS | China Merchants Securities Sees Domestic Computing Power Opportunities as Overseas Tech Volatility Rises

China Merchants Securities said rising volatility in overseas technology stocks has increased market swings and highlighted opportunities tied to China’s domestic computing power. According to Jin10, a China Merchants Securities strategy report said the higher volatility in China’s A-share market has, to some extent, reflected heightened fluctuations in overseas technology. The report cited leverage in the South Korean market and statements related to Meta’s U.S. stocks as factors that contributed to sharp market moves. At the industry level, the report recommended watching for new catalysts in domestic computing power. It said that at an upcoming artificial intelligence conference, Huawei will for the first time display a physical unit of the industry’s largest-scale super-node, the Atlas 950 SuperPoD. The report also noted a sharp rebound in the Hong Kong stock market, saying the main catalyst came from an earnings preview by Alibaba. It added that the rebound driven by an oversold recovery in Hong Kong stocks may have largely run its course. China Merchants Securities said further upside would depend on upward revisions to overall earnings for Hong Kong-listed companies and a higher share of AI-related revenue at leading major technology firms, which it said would need to be verified during the upcoming interim reporting season.