Morgan Stanley Investment Management: The AI Sector Continues to Present Clear Growth Avenues
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Author:小编   

Du Meng, the Deputy General Manager and Investment Director at Morgan Stanley Investment Management (China), remarked that this year, given the early recovery of the Producer Price Index (PPI) and the steady ascent of the Consumer Price Index (CPI), the profitability of listed companies is on the mend. He projected that the overall profit growth rate for A-shares could hit double digits. Chinese equity assets have grown markedly more appealing to global investors, harboring substantial potential for valuation rebound. Regarding industry prospects, the AI sector stands out with its definite growth potential, with the computing hardware segment poised to spearhead the market in terms of prosperity and earnings growth. Critical areas of focus encompass optical modules, Printed Circuit Boards (PCBs), liquid cooling solutions, and computing power leasing services. The new energy sector, centered on lithium batteries, is at a pivotal juncture. The overcapacity challenges that plagued the industry in previous years have largely been mitigated, and the strategic significance of photovoltaics, wind power, and electric vehicles has surged.