en.Wedoany.com Reported - The shortage and price increases of AI computing power are spreading from chips to cloud services and CPU segments. CITIC Securities released a research report on March 31, outlining its technology sector allocation strategy for April, proposing to focus on three directions where first-quarter earnings are strong and valuations are reasonable.

According to the CITIC Securities report, the performance of the technology sector in March indicates that AI computing power remains in an overall tight supply, with price increases already spreading to cloud services, CPUs, and other segments. However, macro disturbances and geopolitical shocks are simultaneously suppressing sector valuations. The report believes that after entering the earnings disclosure period in April, the market is usually in a phase of contracting risk appetite. Coupled with the difficulty in judging the duration of geopolitical disturbances, it is recommended to focus on stable varieties with strong earnings certainty.

The report reviewed A-share technology companies that have disclosed their 2025 earnings forecasts. Within CITIC's three-tier industry classification, sectors related to AI computing power infrastructure are experiencing overall high prosperity. Sectors with year-on-year profit growth exceeding 50% include: network access and tower equipment, PCBs, cables, semiconductor equipment, and integrated circuits. Additionally, the motorcycle sector, gaming, and display components are also in a relatively high state of prosperity.

CITIC Securities provides three allocation clues: First, domestic semiconductor equipment benefiting from the continuous capacity expansion of two memory types (DRAM and NAND Flash). Second, sectors with sustained prosperity such as optical modules, fiber optic cables, PCBs and their upstream, and storage, as well as passive components with a catch-up logic. It primarily recommends leading optical module companies with high earnings certainty and relatively reasonable valuations. Third, the ongoing shortage of domestic AI computing power warrants attention to companies in the Byte Chain and Ascend Chain, switching chips benefiting from super node expansion, server OEMs, and other segments.

The report also notes that multimodal model iterations in May and June will bring new opportunities.

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