FIT HON TENG (06088) saw its shares rise by 7.42% in morning trading, currently quoted at HK$8.26, with a turnover of HK$147 million.

Separately, Bank of America projected that global capital expenditure by hyper-scale cloud computing providers would exceed $800 billion by 2026, representing a 67% year-on-year increase. It is further anticipated to surpass $1 trillion in 2027, growing by approximately 25%.

CMB International highlighted that FIT HON TENG's management holds an optimistic outlook on AI server upgrades over the next three years. The firm has raised its revenue contribution forecast from cloud/data center operations for 2026-2028 from the previous low-20%/mid-20%/low-20% to low-30%. The target price of HK$7.42 is based on a projected 2026 price-to-earnings ratio of 21 times. It is expected that as AI-related revenue contributions increase in 2026-2027, the company's valuation may undergo further reassessment.