HK Stock Market Move | ZTE Corporation (00763) rose over 9% in morning trading session in A shares and hit the daily limit up. The company has been vigorously expanding its businesses in recent years, particularly in smart computing and AI terminals.

ZTE Corporation (00763) rose more than 9%, with its A shares hitting the daily limit. As of the time of writing, the stock was up 9.16% to HK$29.32, with a turnover of HK$15.08 billion. On the news front, the global AI construction is heating up, driving a surge in demand for AI data center (AIDC) infrastructure. Industry experts analyze that the new generation of computing chips have significantly increased power consumption, resulting in higher requirements for data center power systems and liquid cooling technology. Domestic companies in related power, liquid cooling, and energy storage sectors are expected to benefit deeply from this trend, with strong growth expectations for orders. It is reported that ZTE Corporation has developed a full-stack solution for data centers in the AI scene and has the capability for end-to-end delivery. They have launched in-house liquid cooling products such as immersion liquid cooling, cold plate liquid cooling, EDU (external cooling unit), blind plug cabinet, modular AHU (air handling unit), and integrated power module among other innovative products. Open source Securities previously pointed out that the company has been aggressively expanding its second-tier business (smart computing, AI terminals, etc.) in recent years. By 2025Q1, the revenue from the company's second-tier business will account for over 35% of total revenue, with government and enterprise business revenue doubling year-on-year, accounting for over 20% of total revenue, driving the company's revenue back on a growth trajectory. In the computing power field, the company continues to expand its presence with internet companies, operators, and industry firms. With the release of Deepseek bringing demand for smart computing, by 2024 the company is expected to double its revenue from servers and storage in the communication, smart computing, and creative servers segments with top internet customers, large banks, and insurance companies. By 2025Q1, the revenue from servers and storage is expected to grow rapidly, with smart computing servers accounting for over 60% of orders.