Chongqing Machinery & Electric (02722) saw its shares surge more than 9% during the trading session. At the time of writing, the stock was up 5.43%, trading at HK$2.33, with a turnover of HK$64.6306 million.

A research report from China Securities (CSC) previously noted that AIDC is driving sustained strong demand for the high-horsepower engines produced by Chongqing Cummins. The report indicated that the Chongqing Cummins Q60 model has achieved batch supply capability, with sales of high-horsepower engines increasing by 8% in the first half of the year.

Cummins Inc. in the U.S. announced that it received $68 million in investment income from Chongqing Cummins in the first nine months, representing a year-on-year increase of 33.3%. Specifically, for the third quarter of 2025, it received $23 million in investment income, a significant 53.3% increase compared to the same period last year.

Everbright Securities International added that AI computing is highly dependent on large-scale data centers, where the fundamental role of transformers is to step down high-voltage grid electricity to levels usable by data center equipment, making them a critical component in converting electrical power into computational power. The company holds a 37.8% stake in Chongqing Hitachi Energy, which is Hitachi Energy's largest high-voltage transformer manufacturing base in China. Given the current supply shortage of transformers, the investment returns from this business are expected to accelerate the company's profit growth.