ZTE shares hit new high in three years on outlook of AI server price hikes, expanding market shares
COMPANY NEWS STOCKS
ZTE shares hit new high in three years on outlook of AI server price hikes, expanding market shares
COMPANY NEWS STOCKS

ZTE shares hit new high in three years on outlook of AI server price hikes, expanding market shares

 

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Chinese telecom equipment giant ZTE Corporation is surging by nearly 10% in Shenzhen to hit a high of 43.64 yuan at one point, marking a new high in nearly three years. Its H-listed shares are jumping more than 7% to hit HK$30.9.

Market speculation emerges that China’s largest server maker Inspur Electronic Information Industry will raise the prices of AI servers by 10%. ZTE has reportedly made GPUs that drive ChatGPT-style products one of its key business directions and is expected to introduce GPU servers in the fourth quarter of the year.

In addition, in the recent procurement tender of China Mobile, Huawei Technologies won the largest share of all project packages, followed by ZTE, which won about 27% of the total, Jefferies said in a note. Although the share was lower than the bank’s expectation of more than 30%, it maintains a “Buy” rating for ZTE, the bank said.

Jefferies believes that ZTE is undervalued as the company’s market share has been expanding in several fields , including wireline equipment, servers and consumer terminals.

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