According to the report of Hong Kong Media, Morgan Stanley (Mordan) issued a report saying that NVIDIA (Nvidia) plans to resume sales of H20 chips in China and announced the launch of a new AI chip RTX Pro GPU designed for the Chinese market, which...
According to the report of Hong Kong Media, Morgan Stanley (Mordan) issued a report saying that NVIDIA (Nvidia) plans to resume sales of H20 chips in China and announced the launch of a new AI chip RTX Pro GPU designed for the Chinese market, which "fully meets" US export control requirements.
Morbiology believes that this news is an essential catalyst for "BAT", namely Baidu, Alibaba, and Tencent; for example, Alibaba Cloud's revenue in the first quarter achieved an 18% increase, and it is expected to accelerate further in the next few quarters.
While capital expenditure was lower in the first quarter, Morgan Stanley predicted that Alibaba and Teng would increase their capital expenditure in the second half of the year. Morgan Stanley also said that in terms of GPU computing power, telecommunications are AI applications, advertising technology upgrades, and cloud services; Alibaba serves cloud services, and uses AI to transform existing core e-commerce businesses, general and quark AI applications; Baidu moves basic searches to generative AI searches, cloud services and unmanned taxis.
Morgan Stanley ranked Teng as the industry's top choice. Due to its stable revenue and profit growth, it is the best 2C (for consumers) AI representative and also owns WeChat. Among them, early changes have been seen through the upgrade of AI advertising technology, such as advertising revenue has maintained double-digit growth in the past few quarters. Therefore, despite the increase in AI investment, Teng can still achieve positive investment and the competition risk is also lower.
As for Alibaba, Morgan Stanley said that it is the best AI promoter in China, and cloud service accelerates as a catalyst. Morgan Stanley has repeatedly emphasized that Alibaba Cloud is at its best position in capturing the growing demand for AI adoption; however, the market has recently shifted its focus to the outbound and real-time retail competition, resulting in weak stock prices. Morgan Stanley believes that the acceleration of Alibaba Cloud's service revenue growth is the key catalyst, with an estimated growth of 22% in the second quarter, compared with 18% in the first quarter.
Extended reading: Trump is right! NVIDIA will resume sales of H20 for China, launching new special edition RTX PRO
