CITIC Securities: Rising Computing Power Prices Spread, Focus on Three Clues of Better-than-Expected Q1 Earnings

Ask AI · What are the historical reasons for risk appetite contraction during the April earnings season?

Everyday AI News Flash, on April 3rd, CITIC Securities released a research report stating that the performance of the technology sector in March shows that overall computing power remains in short supply, and price increases are spreading to cloud services, CPUs, and other segments. However, affected by macro disturbances and geopolitical shocks, the valuation of the technology sector has suffered significant impact. Looking ahead to April, on one hand, historically, after entering the earnings season in April, the market tends to be in a risk appetite contraction phase; on the other hand, the current geopolitical disturbances are still difficult to judge in terms of duration. Therefore, it is recommended to focus on stable stocks with good first-quarter 2026 earnings and reasonable valuations. For allocation, three directions are suggested: 1. Domestic semiconductor equipment benefiting from the continued expansion of two storage capacities; 2. Continually prosperous optical modules, optical fiber cables, PCBs, upstream components, and passive components with rebound logic, especially optical module leaders with high earnings certainty and relatively reasonable valuations; 3. Domestic computing power remains in short supply, focusing on ByteDance chain and Ascend chain companies, server OEMs, and related segments. It also highlights opportunities brought by the iteration of multimodal models in May and June.

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