Jefferies published a report stating that although ZTE's stock price has been reduced by 50% from the increase since December 13 last year, the market's expectations for the company's artificial intelligence may still be too high. ZTE Microelectronics, a subsidiary of ZTE, has no experience in AI chip design, and most of its revenue comes from internal business. Therefore, the bank believes that it is unrealistic for the market to benefit from the growth of integrated circuits for specific AI applications by ZTE. The bank believes that AI smartphones are not yet popular due to hardware limitations, so even if ByteDance allows ZTE to install AI on its smartphones, the situation will continue. Furthermore, the bank believes that ZTE's valuation is not expensive, but since more than 60% of the company's revenue comes from telecommunications equipment, and telecom operators' capital expenses have peaked, this means that ZTE's profit prospects are still weak. The bank's 2024 and 2025 profit forecasts for ZTE were lower than market expectations and raised its target price from HK$17.94 to HK$18.58, with a rating of “hold”.

Jefferies published a report stating that although ZTE's stock price has been reduced by 50% from the increase since December 13 last year, the market's expectations for the company's artificial intelligence may still be too high. ZTE Microelectronics, a subsidiary of ZTE, has no experience in AI chip design, and most of its revenue comes from internal business. Therefore, the bank believes that it is unrealistic for the market to benefit from the growth of integrated circuits for specific AI applications by ZTE. The bank believes that AI smartphones are not yet popular due to hardware limitations, so even if ByteDance allows ZTE to install AI on its smartphones, the situation will continue. Furthermore, the bank believes that ZTE's valuation is not expensive, but since more than 60% of the company's revenue comes from telecommunications equipment, and telecom operators' capital expenses have peaked, this means that ZTE's profit prospects are still weak. The bank's 2024 and 2025 profit forecasts for ZTE were lower than market expectations and raised its target price from HK$17.94 to HK$18.58, with a rating of “hold”.