Industrial Securities: The news about Meta leasing and selling computing power externally should not be interpreted too pessimistically as indicating an oversupply of computing power.

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Mars Finance News, on Wednesday, reports that Meta is considering cross-border sales of its surplus AI computing capacity triggered sharp pullbacks in global AI hardware and high-tier technology stocks. Citic Securities believes that the news about Meta leasing and selling computing power externally should not be overly pessimistically interpreted as a surplus of computing capacity or a comprehensive slowdown in CapEx, because (1) this is not entirely new information—there were related reports as early as May this year; (2) Meta is a special case among hyperscalers, and its consumer-oriented business relies mainly on advertising for AI monetization—its foray into cloud services could improve shareholder returns and cash flow; (3) Meta still has a computing power shortage, with reports this week that Google has limited its access + Meta signed an agreement with Crusoe; and (4) hardware demand comes from inference rather than “inflation” on the training side. (Cailian Press)
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