AI and Rate Cuts Drive Growth in U.S. IDC Sector

According to Odaily, a research report by CITIC Securities highlights the sustained growth in the Internet Data Center (IDC) industry, driven by the resurgence of IT spending by traditional enterprises, the rise of cryptocurrencies, and the influence of artificial intelligence (AI). The expansion pace of IDC companies in the U.S. stock market has accelerated, with growth expectations revised upwards. The Federal Reserve's move towards interest rate cuts is expected to provide further positive catalysts. From a performance perspective, rate cuts are likely to reduce financing costs and boost profits for companies. In terms of valuation, declining interest rates may enhance the overall valuation level of the industry. On an industry level, the increasing threshold driven by AI is expected to benefit IDC providers associated with leading tech companies, reinforcing the dominance of strong players. The report expresses optimism about the opportunities presented by Generative AI and interest rate cuts for the U.S. IDC sector. It recommends focusing on two main strategies: investing in leading IDC companies closely tied to major tech firms and paying attention to companies transitioning to high-end clients amid a backdrop of high industry growth.