Earnings estimates for China’s broader information technology firms have been outpacing the country’s biggest consumer-internet names, with a record-high divide that has been growing for two years.
With the continued artificial intelligence boom and Beijing’s emphasis on technological self-reliance in its five-year economic blueprint, AI hardware-focused companies are driving upward revisions in the IT sector. Chipmaker Cambricon Technologies, optical solutions firm Zhongji Innolight and AI server manufacturer Foxconn Industrial Internet are among those expected to see strong annual profit growth through 2027.
On the other hand, e-commerce and food delivery bellwethers such as Alibaba Group Holding, Meituan and JD.com have been held back by price wars and intense competition, something China is trying to curb.
