Analysis of the Impact of Operators' Computing Power Network Investment on Equipment Vendors like ZTE

Based on the collected data and analysis, I now provide you with a systematic and comprehensive analysis report.

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The continuous expansion of operators’ computing power network investment has brought

for communication equipment vendors like ZTE. In 2026, the investment in the computing power field by the three major operators is expected to exceed , accounting for more than of the annual capital expenditure [1]. This structural transformation will fundamentally reshape the business structure and growth logic of equipment vendors. Relying on its breakthroughs in core technologies such as Intelligent Computing Super Node and Orthogonal Super Node System, ZTE is expected to become one of the core beneficiaries of this round of computing power investment dividends [2].

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The investment logic of China’s operators is currently undergoing a

. Traditional network investment focused on 5G base station construction has entered the “deep coverage” stage, while computing power network construction has become a new core driving force.

Indicator	2023	2024	2025	2026 (Forecast)
Computing Power Network Investment (RMB 100 million)	850	1200	1650	2100
Proportion of Total Capital Expenditure	18%	25%	32%	38%
YoY Growth Rate	-	+41%	+38%	+27%

From the perspective of investment structure, operators’ computing power investment is mainly concentrated in the following areas:

1. Data Center Cluster Construction
   : Focus on promoting the construction of large-scale data center clusters in computing power hub nodes such as the Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Areas [1]
2. Intelligent Computing Server Procurement
   : In the first half of 2025, China Mobile issued a bid for approximately 7,058 units of artificial intelligence general computing devices (inference type) [3]
3. Liquid Cooling Technology Deployment
   : Promote the universal PUE of new large-scale data centers to be lower than 1.25, achieving coordinated development of computing power growth and energy consumption reduction [1]
4. Cross-regional Computing Power Scheduling
   : Optimize the layout of computing power nodes in central and western regions to improve the scheduling efficiency of the national computing power network

As of the first quarter of 2025, the total computing power scale of China’s “East Data West Computing” eight hub nodes reached

(billion billion floating-point operations per second), with intelligent computing power accounting for as high as [3]. As of the end of June 2025, the scale of standard racks in China’s in-use data centers reached , a significant increase compared to the previous year. This massive computing power infrastructure network creates sustained growth market demand for equipment vendors.

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According to industry data, the concentration of China’s server market is steadily increasing, with ZTE, Inspur, Huawei FusionServer, and H3C collectively accounting for

of the market share [3]. ZTE’s market share in the computing power equipment field increased from in 2023 to in 2025, and is expected to further reach in 2026.

The figure above shows: (1) The continuous growth trend of computing power network investment by the three major operators; (2) The rapid increase in the proportion of computing power investment in total capital expenditure; (3) The simultaneous growth of the computing power server market size and ZTE’s market share; (4) A comparison of the benefit levels of major equipment vendors.

ZTE’s core competitive advantages in the computing power field are reflected in the following technological breakthroughs:

: Based on a self-developed high-capacity AI switching chip, it innovatively launched an Orthogonal Super Node System for high-performance training and inference, effectively breaking through the “ceiling” of single-machine computing power and promoting the popularization of computing power. This system has industry-leading integration and expansion capabilities, supporting the construction of soft-hardware collaborative, network-aided computing, open and decoupled, efficient and stable large-scale intelligent computing clusters with 10,000 or 100,000 cards, which can effectively support the training of sovereign large models with over trillion parameters [2][3].

: Together with the “Co-Sight Super Intelligent Agent”, it won the SAIL Top Award and the first place in the open-source list respectively, witnessing ZTE’s firm footprint in high-intensity R&D [2].

ZTE proposed the new “

” strategy in 2025, and has taken solid steps. According to the company’s announcement, its revenue has returned to a growth track; the network business has been deeply cultivated, stabilizing its position as a profit “ballast”; the computing power business continues to break through key customers, creating a new growth “engine” [2].

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The equipment market driven by operators’ computing power investment presents the following competitive characteristics:

Equipment Vendor	Competitive Advantage	Benefit Level Score
Huawei	Full-stack solution capabilities, ecological integration advantages	90
ZTE	Intelligent Computing Super Node technology, market share growth	85
Inspur Information	Server scale advantages, AI server layout	80
H3C Technologies	Network equipment foundation, computing-network integration capabilities	75
FiberHome Communications	Optical communication foundation, high growth of computing power business	70

1. AI Computing Power Servers
   : Operators have increased their demand for artificial intelligence computing power servers, and ZTE has built differentiated competitiveness based on self-developed chips [3]
2. Liquid Cooling Supporting Equipment
   : Liquid cooling has entered the 0-1 demand release period at home and abroad, and higher-density computing power architectures have increased the application certainty of liquid cooling solutions [4]
3. Optical Communication Equipment
   : Hollow-core optical fibers have been industrially applied in data center scenarios, benefiting enterprises such as FiberHome Communications significantly [4]
4. Edge Computing Power Equipment
   : End-side AI competition has extended from “small toys” to “big tools” such as mobile phones, driving the growth of edge computing power demand [4]

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According to the latest financial data, ZTE’s current market capitalization is approximately

, with a stock price of RMB 38.92, a current PE of , and a PB of [5].

Financial Indicator	Value	Industry Position
ROE (Return on Equity)	7.92%	Above average
Net Profit Margin	4.43%	Stable
Current Ratio	1.82	Healthy
Quick Ratio	1.23	Good
Debt Risk	Low	Financially secure

Institutions expect that as a core industry asset, ZTE will benefit from the dividends of the AI computing power chain and new-quality productive forces policies, with strong certainty in performance growth, and its

[6]. The main growth drivers include:

1. Performance realization brought by the large-scale commercialization of
   5G-A
2. Continuous penetration of
   AI-native networks and low-altitude economy scenarios
3. Steady increase in
   overseas market share
4. Computing power business
   becoming a new growth engine

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1. Industry Cycle Risk
   : Network investment is still affected by the industry cycle, and 5G investment has passed the high-growth period [2]
2. Commercialization Process Risk
   : The formation of a commercial closed-loop for intelligent computing business still takes time, and the profit model needs to be verified [2]
3. Geopolitical Risk
   : Global geopolitical fluctuations may affect overseas market expansion
4. Gross Margin Pressure
   : Intensified industry competition may lead to a decline in gross margin
5. Technological Iteration Risk
   : The rapid iteration of AI technology increases the pressure of product updates

• Increase R&D investment to maintain technological leadership
• Expand diversified customers to reduce dependence on a single customer
• Optimize cost structure to improve operational efficiency
• Accelerate the commercialization of intelligent computing business

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The continuous expansion of operators’ computing power network investment has brought

for communication equipment vendors like ZTE:

1. Market Scale Expansion
   : China’s computing power market size is expected to reach
   RMB 835.1 billion
   in 2025, with a YoY growth rate of over 30% [3]
2. Business Structure Optimization
   : The computing power business has become a new growth engine, promoting the upgrading of revenue structure
3. Valuation Reassessment Opportunity
   : Transformation from a traditional communication equipment stock to a “core infrastructure of the digital economy”

As a leader in the communication equipment industry, ZTE has the following investment values:

Dimension	Evaluation
Growth	Benefiting from computing power investment dividends, with strong certainty in performance growth
Stability	The network business serves as a “ballast” for profits, with stable cash flow
Valuation	A PE ratio of 31x is at the lower end of the historical range, with room for recovery
Technological Barrier	Core technologies such as Intelligent Computing Super Node form differentiated advantages

: Global geopolitical fluctuations, margin pressure from intensified industry competition, and slower-than-expected commercialization of intelligent computing business

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[1] 2026 Operator Investment Outlook: How Big is the Market This Year? - CNfol Online Finance Channel

[2] Fang Rong, Chairman of ZTE: Forge Ahead, Achieve In-depth Breakthroughs, and Create a Digital-Intelligent Future of High-Quality Development - ZTE Official Website

[3] 2025 Computing Power Industry Review: Who is the Real Winner? - Huxiu.com

[4] 2026 Communication Investment Opportunities Review: Computing Power as Core, Satellite as Wing - Sina Finance

[5] Jinling API Company Profile Data - ZTE (000063.SZ) Market Data

[6] In-depth Analysis of Investment Opportunities in the Communication Field: FiberHome Communications, ZTE - East Money Wealth Account

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: January 8, 2026
: Jinling AI