Understanding the Market | FIT HON TENG rises by over 6% again, Apple's AI advantage on the device side is stronger than Android, and the hardware replacement cycle is expected to come
FIT HON TENG's stock price has continued to rise by over 30% recently. Apple has announced its edge-side artificial intelligence strategy, which has a stronger advantage compared to Android. Nomura believes that as generative artificial intelligence gradually lands, Apple's full ecosystem scheduling capability is expected to drive the hardware replacement cycle. CMB International predicts that Apple's product updates in the third quarter of this year will drive demand growth for FIT HON TENG and other supply chain companies. FIT HON TENG is one of the leading manufacturers of server connectors globally, and its server/interconnect business revenue is expected to grow by 15-20% year-on-year
According to the Wise Finance APP, FIT HON TENG (06088) has risen by over 6% again, accumulating over 30% in the past four trading days. As of the time of publication, it has risen by 5.74% to HKD 3.13, with a turnover of HKD 46.9491 million.
On the news front, Apple has announced its AI strategy. Some analysts believe that Apple's advantages in on-device AI implementation are stronger than Android. Nomura believes that as the generative AI base gradually solidifies, the application layer is shifting from the cloud to the edge, and the landing of on-device applications such as mobile phones and PCs is gradually unfolding. Apple's full ecosystem scheduling capabilities are expected to help it rapidly develop in the on-device AI field. Apple's entry into AI terminals will further accelerate the landing of on-device AI, potentially redefining on-device device usage scenarios and driving hardware replacement cycles.
CMB International believes that Apple's AI feature updates released at WWDC this time basically meet market expectations. Considering the products that have been launched, only the iPhone 15 Pro series and devices using the M1 or newer chips can use Apple Intelligence. The bank expects a product update replacement demand in the third quarter of this year, benefiting related supply chain companies including FIT HON TENG. The bank had previously pointed out that FIT HON TENG is one of the leading global server connector manufacturers, and the management expects a year-on-year growth of 15-20% in server/interconnect business revenue in 2024