Weichai Power (02338) experienced a notable surge in early trading on Thursday, with shares climbing more than 10% at one point before paring gains to approximately 5%. At the time of writing, the stock was trading 4.87% higher at HK$31, with turnover reaching HK$430 million.

The rally comes amid growing market optimism surrounding the company's positioning in the data center power supply sector. According to the latest report from TrendForce, cloud service providers (CSPs) are accelerating infrastructure deployment to meet surging demand from AI applications. The research firm projects that global data center electricity demand will reach 161GW by 2026, representing a year-on-year increase of approximately 31%. AI servers are expected to account for 33.4% of this total demand capacity, highlighting the significant growth opportunity for power equipment suppliers.

Southwest Securities analyst Zheng Liansheng recently published a research report titled "2026 Interim Results Review: Core Business Demonstrates Resilience, AIDC Power Supply Accelerating Breakthrough," assigning a Buy rating to Weichai Power. The report underscores the company's strong fundamentals in its traditional operations while emphasizing the accelerating momentum in its AI data center (AIDC) power supply business as a key growth driver.