GLMS Securities' Kong Rong Maintains Bullish Outlook on Historic Tech Sector Opportunities

Deep News
Yesterday

Recent movements in global technology stocks have been both exhilarating and anxiety-inducing for investors. On one hand, the anticipated listings of giants like SpaceX and OpenAI are generating excitement, while on the other, certain tech segments are undergoing corrections. This has led to a widespread sentiment of "fear of missing out" coupled with apprehension about buying at peaks, leaving many investors conflicted between chasing gains and avoiding potential downturns.

GLMS Securities' Perspective on Tech Sector Dynamics

Kong Rong, Deputy General Manager of the Research Institute and Chief Overseas Analyst at GLMS Securities, emphasizes that the core driver of the current technology rally is fundamentally distinct from the trends of the past three years. Previously, market sentiment was clouded by AI bubble concerns, as heavy capital expenditure lacked corresponding "killer applications" to generate substantial revenue. However, the landscape has shifted dramatically since the first quarter. For instance, Anthropic's annualized revenue has skyrocketed from approximately $9 billion to nearly $50 billion, demonstrating non-linear monthly growth. Similarly, OpenAI's Codex product has triggered a massive surge in API calls. This non-linear explosion in commercialized revenue is providing the market with unprecedented confidence.

Against this backdrop, upstream computing power is in severe shortage, with securing such capacity now directly linked to future revenue growth potential. The trend of hardware price increases is expected to persist. While short-term market adjustments are occurring, Kong views these as healthy profit-taking activities rather than a reversal of the overarching upward trend. The anticipated public listings of companies like SpaceX and OpenAI in the latter half of the year, alongside domestic tech IPOs, are poised to act as further catalysts for the sector.

Key Investment Areas Highlighted by Analysts

Kong advises investors to concentrate on three primary areas. The first revolves around the logic of tight upstream supply driven by implementation and commercialization. This includes persistently scarce hardware components such as memory, optical modules, CPUs, PCBs, and MLCCs. Additionally, power and energy infrastructure remains a critical, long-term necessity for the development of North American data centers.

The second focus is on software companies poised to benefit from the rising demand for AI agents. Firms specializing in data warehousing, cybersecurity, and identity authentication, which possess strong competitive moats, are expected to see continued opportunities.

The third area is the entirely new frontier of the "space economy," symbolized by the vast potential brought by SpaceX. Furthermore, the emerging field of physical AI (world models), which analysts have been actively researching, is highlighted as a new direction worthy of long-term tracking.

In conclusion, the analyst reaffirms a continued optimistic stance on what is described as an epic, golden opportunity within the global technology sector.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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