Chinese Technology stocks are soaring across the board! How to seize this round of investment opportunities? These four major industrial directions are expected to experience an explosion.

Today, two major news items broke in the field of AI in China, known as the "Twinkling Twins."

The first point isAlibaba has launched a brand new inference model,with only 1/20 of the parameters comparable to DeepSeek R1;The second point isManus Agent makes a stunning debut.，It has become the first truly universal AI Agent in the world.

The market generally believes that, with the application of AI technology coming to fruition,the revaluation of Chinese Technology Assets in the capital markets has just begun.The arrival of the Agent era means that AI will transition from an auxiliary tool to a productivity engine, and the level of restructuring in traditional industries will far exceed expectations.

It is worth noting that,In the race of Technology competition, capital expenditure is the 'fuel' for enterprises.

In 2025, the Global Technology Industry is staging an unprecedented 'money feast'.——Amazon is investing hundreds of billions, Meta is betting 65 billion dollars, Alibaba.In the next three years, it will invest more than 380 billion yuan.……Behind these astronomical figures is a 'life-and-death race' surrounding the future of AI.

Alibaba previously announced that it will invest over 380 billion yuan in the next three years to build Cloud and AI hardware infrastructure, which exceeds the total of the past ten years. The market expects that, driven by the leaders, other manufacturers may also follow suit.

According to Huachuang Securities, as the demand for computing power increases, Tencent is expected to increase its capital expenditure in the AI field.Of course, the specific situation needs to wait for Tencent to explain during the Earnings Call around March.However, since ByteDance is not listed, relevant financial data is hard to obtain. Considering the increasing traffic for Doubao, there is a necessity to increase AI investment.

Which companies are likely to benefit.

According to Open Source Securities, the domestic AI computing power Industry Chain may welcome a golden industrial opportunity, with AI Cloud Computing resources represented by Alibaba Cloud, Tencent Cloud, Huawei Cloud, Volcano Cloud, Tianyi Cloud, Mobile Cloud, and Unicom Cloud potentially increasing in scarcity.

The firm is bullish on four major industry directions: AIDC Datacenter construction (AIDC Datacenter, Diesel Generators, Air Cooling & Liquid Cooling, etc.), IT side (domestic computing power chips, Servers, and power sources), network side (Switches and chips, Optical Communications, AEC Copper connections, CDN, etc.), and Cloud Computing (Public Cloud, Private Cloud, Computing power leasing).

Futu News compiled a list of Chinese enterprises listed on the Hong Kong and US stock markets for mooers' reference:

Specifically,

– AIDC Datacenter construction includes,

AIDC Datacenter$GDS Holdings (GDS.US)$ / $GDS-SW (09698.HK)$ 、 $21Vianet (VNET.US)$ 、 $SUNEVISION (01686.HK)$ 。

Daiwa released a Research Report indicating that channel surveys show GDS Holdings secured approximately 140 megawatts of orders from Alibaba for the Langfang datacenter in the first quarter of this year. The new orders account for about 15% of GDS Holdings' utilized capacity, also reflecting the growing demand for computational operations in core cities. It is anticipated that this will drive revenue growth beyond expectations in 2026, with confidence that under the commitment of various enterprises to increase investments in Cloud Computing, GDS Holdings will have opportunities to secure more new orders from other Internet companies, capitalizing on the growing industry demand trend over the next two years. Daiwa has a bullish outlook on GDS Holdings with a target price of HKD 46.

Recently, several Institutions have shown unanimous bullishness on 21Vianet, believing that the company’s valuation is undervalued and significantly raising the company’s target price. UBS Group previously listed 21Vianet as a preferred choice among China’s datacenter companies, raising the target price to USD 25; Nomura Securities gave the company a Buy rating and raised the target price to USD 20.1; Jefferies Financial raised the target price to USD 20.6 and continued to list 21Vianet as one of the preferred stocks in China’s AI supply chain.

Morgan Stanley has also expressed a bullish view on China’s Internet Data Center (IDC) Sector, stating that REITs provide IDC an onshore financing channel that can help in deleveraging and raising future capital expenditure, and provide valuation indicators for IDC Assets. The valuation multiples for private REITs have reached 10-13 times, triggering market re-evaluation. As a result, Morgan Stanley raised the target prices for GDS Holdings and 21Vianet, while SUNEVISION stands out in the Hong Kong datacenter field and is also one of the good choices identified by the institution long ago.

Upstream diesel generator $China Yuchai International (CYD.US)$ 、 $WEICHAI POWER (02338.HK)$ 。

GTJA Securities stated that benefiting from the continued high prosperity of domestic AIDC and Datacenter construction, the demand for high-end diesel generators is growing rapidly. HAITONG SEC released a Research Report stating that as a leading domestic diesel engine enterprise, Weichai has scale advantages in developing AIDC diesel generation. Bullish on AIDC diesel generation driving the company's performance growth.

– The network side includes:

The global leader in the optical fiber and cable industry $Yangtze Optical Fibre And Cable Joint Stock (601869.SH)$

The development of AI brings more demand for computing power, and the domestic digital economy is moving towards a new era centered on computing power. High-capacity, long-distance, low-latency optical transmission technology has been more widely applied, which will become the main driving force for the growth of demand for optical fiber and cables in the medium to long term.

– Cloud Computing includes,

the three major operators. $CHINA MOBILE (00941.HK)$ 、 $CHINA TELECOM (00728.HK)$ 、 $CHINA UNICOM (00762.HK)$ as well as $BABA-W (09988.HK)$ 、 $TENCENT (00700.HK)$ 、 $BIDU-SW (09888.HK)$ Wait;

– The IT side includes:

Chips $SMIC (00981.HK)$ 、 $HUA HONG GRACE (01347.HK)$ and Servers $ZTE (00763.HK)$ 。

In addition, previously Futu NewsDeepSeek made a big announcement on the first day of the Open Source Week! It is expected to further catalyze the AI+ theme, and these Hong Kong stocks may be in high demand.As previously mentioned, with the enthusiasm for DeepSeek growing, industries such as AI applications, telecommunications and equipment, and intelligent driving are being sought after by capital. Interested mooers can click to view.

With the launch of Manus, the market believes that if it becomes open source, it will benefit the domestic AI intelligent agent industry chain.It is equivalent to equal rights for AI applications, while accelerating AI empowerment in traditional industries, and also remaking the valuation of domestic application software.

What do the Institutions think?

A research report from Western Securities pointed out that large models are reshaping the technology architecture, service models, charging models, and application ecology of cloud vendors. DeepSeek has accelerated the process of reshaping.On one hand, it brings adjustments to the computational power service focus of cloud vendors, while on the other hand, it is expected to further expand downstream market demand, prompting cloud vendors to increase investment in AIDC infrastructure.

The institution further stated that for the public cloud infrastructure industry chain, the demand for inference computing power is expected to accelerate growth, driving the accelerated construction of domestic AIDC and accelerating the penetration process of domestic cards represented by Ascend, which is bullish for suppliers at all stages of the industry chain.

In addition, Institutions have pointed out that DeepSeek's three keywords, "low cost" + "high performance" + "open source," have triggered a chain reaction in the global Technology market: the rise of DeepSeek will shift the global focus of Technology investment from "piling up computing power" to the collaborative development of "algorithms + data + computing power."The AI Industry has transitioned from a "arms race" to a "scene landing" phase, with a dramatic increase in overall demand for computing power, leading to a systematic reassessment of the value system in the Computer industry.

The China Banking Research Reports point out that the launch of DeepSeek's large model is expected to become a catalyst for accelerating the landing of AI applications. This open-source model, which has performance comparable to GPT but significantly lower costs, will bring good news to downstream application developers, accelerating commercialization and profit realization.

China Banking's research report focuses on AI vertical fields such as Medical, enterprise services, Education, office, finance, and marketing. These fields have characteristics such as clear application scenarios, easily verifiable business models, low investment costs in the Industry Chain, and high-frequency urgent user demands, making them more likely to achieve commercialization first.

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