VSTECS (00856) surged over 5% during intraday trading. As of press time, the stock was up 3.9% to HK$10.38 with trading volume reaching HK$118 million.

On the news front, market research firm Omdia reported on September 9th that China's AI cloud market reached 22.3 billion yuan in the first half of 2025, with Alibaba Cloud leading at 35.8% market share. The report indicates that Generative AI (GenAI) is driving explosive growth in the AI cloud market, with an expected 148% increase in 2025 and projected market size reaching 193 billion yuan by 2030.

Additionally, Oracle Corporation announced its first quarter results after market close on Tuesday. While revenue and earnings per share fell short of expectations, the AI business showed remarkably strong growth prospects. A substantial deal with OpenAI significantly boosted order volumes and provided aggressive growth expectations for the cloud infrastructure business.

A recent research report highlights that VSTECS established its cloud computing division in 2013, beginning its cloud business layout. Starting in 2015, the company gradually partnered with cloud providers including Microsoft, Alibaba Cloud, Amazon, Huawei, and VMware. In 2020, the company acquired Yunxing Data (now called Canaan Yunxing), a software technology company focused on cloud management and AI computing scheduling operations.

In 2024, the company's artificial intelligence business revenue reached HK$3.78 billion, representing a 42% year-over-year increase. Analysts are optimistic about the company's future layout in cloud computing and AI sectors, which is expected to unlock a second growth curve. Initial coverage includes a "Buy" rating.