BofA Securities is bullish on the data center sector, particularly on VNET and GDS-SW, as well as on KINGSOFT CLOUD in the public cloud sector. The positive outlook is driven by several key developments in China's AI industry, including the release of advanced AI models by companies like ByteDance and KNOWLEDGE ATLAS, which are expected to accelerate the adoption of AI technologies among enterprises and developers. This increased demand for AI capabilities is anticipated to boost the need for data centers, particularly for model training and inference. Additionally, price hikes announced by public cloud providers are expected to stabilize IDC leasing price trends and support cloud service pricing, further enhancing the growth prospects for these companies.
