Essence of Securities Morning Meeting | Firmly optimistic about the computing power industry chain.

Yesterday, the market rebounded sharply with the Kechuang 50 Index surging more than 9%, approaching historical highs. Trading volume significantly increased, with a total turnover of 3.23 trillion yuan in Shanghai and Shenzhen. In terms of sectors, concepts such as computing chips, storage chips, commercial aerospace, and copper foil saw gains. On the downside, oil and gas stocks collectively adjusted. By the close, the Shanghai Composite Index rose by 1.17%, the Shenzhen Component Index rose by 2.33%, and the ChiNext Index rose by 2.75%. At the morning meeting of securities firms today, China Securities Co., Ltd. believes that the four major CSPs in North America have raised their capital expenditure expectations for 2026, and remains bullish on the computing power industry chain; Huatai believes in three major clues from the perspective of foreign capital allocation; GF SEC believes that a positive cycle is beginning. China Securities Co., Ltd.: The four major CSPs in North America have raised their capital expenditure expectations for 2026, and remain bullish on the computing power industry chain. The four CSP manufacturers in North America released their first-quarter reports, continuing to increase capital expenditure. The total capital expenditure of the four major CSP manufacturers in North America in 2026 Q1 was 131.6 billion US dollars, a year-on-year increase of 70.25%. It is expected that the total capital expenditure in 2026 will be 710 billion US dollars, and high growth can still be seen in 2027. The four major cloud giants in North America collectively raised their capital expenditure expectations for 2026, and their overall outlook for 2027 is positive, indicating that the construction peak of computing power infrastructure has not yet peaked. Bullish on the entire AI industry chain, especially the AI computing power industry chain. Huatai: Focus on three major clues from the perspective of foreign capital allocation. In the first quarter of 2026, the degree of underweighting of Chinese stocks in the top overseas funds continued to recover. Looking ahead, it is recommended to focus on three clues in the medium term: 1) Red dividends with stable ROE and dividends, and A50 core assets with cost-effective valuations; 2) Direction of undervalued cyclical recovery under the strengthening of stable growth expectations; 3) Global scarce assets preferred by foreign capital in the long term such as Internet technology, consumer leaders, and resource dividends. GF SEC: Starting a virtuous positive cycle. In the first quarter of 2026, listed companies handed in more impressive reports than expected. Compared to the profit growth rate itself, the positive changes revealed by connecting the three financial reports are more inspiring, showing that Chinese listed companies have already passed the most difficult times of cash flow and profit statements and are moving towards a new round of expansion. This article is reproduced from "Finance Network", GMTEight editor: Liu Jiayin.