China Merchants Securities' research report indicates that, based on financial analyses of Microsoft and SK Hynix, the AI industry is currently facing supply constraints rather than widespread oversupply. Large technology companies are increasing their investments in AI infrastructure, and customer demand for additional supply is growing, with no supporting evidence in financial reports to justify concerns about AI computing power oversupply. Microsoft’s computing utilization rates and SK Hynix’s order volumes reveal that the industry’s key challenge lies in insufficient supply of high-performance computing, advanced memory, and supporting data center infrastructure.
CITIC Securities: The AI industry faces supply constraints; concerns about excess compute lack evidence
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Summary
CITIC Securities’ latest daily market report states that the AI industry is encountering supply constraints, not excess computing capacity. Financial results from Microsoft and SK Hynix indicate rising demand for AI infrastructure. High-performance computing and storage remain in short supply. The Fear & Greed Index suggests market sentiment remains cautious, but data shows no signs of overcapacity. Order books and utilization rates reflect sustained demand.
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