CITIC Securities: The computing power industry is still growing but will return to rationality
A CITIC Securities research report holds that the computing power sectors of China and the US are in a highly prosperous construction cycle; the industry is still growing but will return to rationality. Computing power construction in North America faces the dilemma of whether investment can be recouped and whether financing can be sustained; China's computing power capital expenditure has large room for growth, with the key lying in the performance and volume ramp-up of domestic computing power chips, and 2028 may be a node for supply release. CITIC Securities warns that the scale of US stock computing power is highly concentrated, with valuations comparable to the "dot-com" era, and that net "liquidity injection" on the funding side is narrowing, so adjustment risks must be guarded against.
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CITIC Securities' research report states that the China and U.S. computing power sectors are in a highly prosperous construction cycle. Amid rapid growth, North American computing power construction faces difficulties on both the investment and financing sides: first, can the investment be recouped? Second, can financing support it? China's computing power capital expenditure has significant room for growth, with favorable conditions in the state-owned capital system, credit costs, and infrastructure capacity. The key lies in the performance and volume production ramp-up of domestic computing power chips, and 2028 may mark a supply release node. Overall, CITIC Securities believes the industry is still growing but will return to rationality. Considering the highly concentrated scale, valuations on par with the "tech bubble," and a funding environment where "draining" has rebounded while net "injection" has narrowed, the U.S. stock market must be alert to correction risks.
(Source: People's Financial News) Mid-article embedded advertisement