CITIC Securities: AI-driven + interest rate cycle, continued benefits for leading manufacturers

Jinshi data news on February 6th, CITIC Securities research report stated that the IDC (Internet Data Center) industry continues to be highly prosperous, accompanied by the recovery of traditional enterprise IT spending, the rise of Cryptocurrency, and AI becoming the main driver of the industry. The expansion pace of various IDC companies in the US stock market is accelerating, with the rise of rise expectations. The Fed’s entry into the interest rate reduction channel will also bring more positive catalysts: from the performance dimension, the interest rate reduction is expected to drop the company’s financing costs and release profits; from the valuation dimension, the downward Intrerest Rate may increase the overall industry valuation level; from the industry dimension, AI driving the threshold rise, IDC vendors that are bound to top technology companies are expected to continue to benefit, and the strong will become stronger. We are optimistic about the upward opportunities for GenAI and the interest rate reduction brought to the US stock IDC sector. Under the trend of centralized supply and demand in the industry, we recommend two main lines, one is the leading enterprise of Depth binding top technology companies in the IDC sector; at the same time, we recommend following enterprises that are transforming with high-end customers in a high-prosperity background.