As enterprise artificial intelligence (AI) applications continue to deepen, more and more companies are beginning to receive quantifiable returns from AI investments.
However, Morgan Stanley believes that insufficient computing power supply is becoming a key bottleneck limiting the further expansion of the AI industry, and restrictions on electricity, labor, and political levels may cause this problem to persist for years to come.
Morgan Stanley's Michelle Weaver said that the application of artificial intelligence by enterprises is increasingly producing substantial results, but limited computing power supply is still a bottleneck limiting growth.
“We are very short on supply. We're seeing computing power become a limited resource,”
Weaver, an American subject research strategist at Morgan Stanley, said. “Electricity bottlenecks, political bottlenecks, labor bottlenecks — these are factors that will limit supply for years to come.”
The Zhitong Finance App learned that at present, AIDC's demand for high-reliability backup power supplies has increased significantly. The trend of upgrading products such as high-power, high-voltage, and intelligent parallel machines is clear, and data centers have become the most important incremental direction for the diesel engine and diesel engine industry.
According to the CICC research report, the overall performance of the power equipment industry has been steady and improving in 2026, prompting investors to focus on structural opportunities.
In terms of traditional power grids, the “15th Five-Year Plan” new energy system clearly positions the power grid “adapts to a high proportion of new energy”, and the “15th Five-Year Plan” investment plan of the State Grid has been released, and grid investment can be expected for a long time. Furthermore, the pace of global AIDC infrastructure is accelerating, and demand for related power equipment is strong, and Chinese power equipment companies are expected to obtain orders with advantages such as short delivery cycles, high cost performance, and adequate after-sales service.
CICC still believes that the global electricity cycle is beginning to emerge. The development of new power systems is a long-term, continuous process. The boom may last until 2030, while orders, revenue, and profits of major listed companies are still on a solid upward channel. After adjustments, current valuations have entered a historical underestimated range, and the sector has long-term investment value.
Hong Kong stocks related to power equipment:
Dongfang Electric (01072): Since 2009, Dongfang Electric has taken the lead in developing a heavy F-class 50MW gas turbine (G50) with completely independent intellectual property rights in China, and has achieved 100% independent manufacturing of high-temperature components. At the end of 2022, the first G50 was successfully ignited at China's Huadian Guangdong Qingyuan Overseas Chinese Industrial Park project site, and was officially put into commercial operation in March 2023; overseas orders achieved a “zero” breakthrough in 2025.
Harbin Electric (01133): Its self-developed 16 MW gas turbine is expected to be tested in the second half of 2026 before it can be commercialized.
Weichai Power (02338): CITIC Construction Investment pointed out that considering that Weichai Power's core growth engine has switched from heavy truck powertrain and vehicle to the booming AIDC power generation business, the share of related profits is expected to increase from 20% to more than 40% in 2026-2028, and contribute more than 70% to the performance increase. We are optimistic about Weichai's valuation potential against overseas leaders, and Davis can be expected to double click.
Weisheng Holdings (03393): Recently, it won a subsidiary bid to supply Brazil's Equatorial Energia polymerizer. The agency expects strong profit growth in the distribution business and overseas smart meter sales from 2026 to 2027.
Tsugami Machine Tool China (01651): In 2025, the company began to accept more orders for AI liquid cooling joints. In 2026, the company began to accept more ROSA and TOSA orders for AI optical modules. As the precision requirements for optical modules became higher and higher, the company also gained more share in this field, and liquid cooling joints will become more complex in the future, and demand for machine tool products is also on the rise. AIDC will continue to be the driving force for the company's performance growth in the future. According to Yamato's research report, Tsugami Machine Tool is one of the key machine tool beneficiaries of AI infrastructure investment. Demand for AI liquid-cooled quick-release joints remains strong. Management said that orders for FY2026 have reached about 1,000 units, and are expected to double in FY2027, mainly driven by Nvidia GB300-related deployments.
Yingpu Precision (01286): The company is transforming from a traditional foundry to an American Artificial Intelligence Data Center (AIDC) precision engineering platform. The commissioning of its high-horsepower engine and Mexican plant will be a catalyst for valuation revaluation. The Group predicts that sales growth will be more significant in the second half of 2026. The Group has raised the annual sales growth rate forecast to 20% to 25%, with the goal of doubling revenue from 2025 to over HK$10 billion in 2029 or 2030.
Chongqing Electromechanical (02722): Chongqing Electromechanical issued a positive profit forecast. The company expects net profit attributable to shareholders for the six months ending June 30, 2026 to increase by about 30% compared to the same period in 2025. This increase is mainly due to the Group's continuous improvement in lean management, increased profits in the intelligent machine tool business, increased profits driven by growth in the scale of the wind power blade business, and increased investment income in the high-horsepower engine business and UHV transmission and transformation business. Huayuan Securities believes that by the end of 25, it will participate in 50% of Chongqing Cummins and 38% of Chongqing Hitachi Energy, and the company is expected to benefit deeply from AI data center construction and the transformation of the global energy structure. Furthermore, the “15th Five-Year Plan” of Chongqing Electromechanical Group establishes the overall strategic outline of the “12358,” which is expected to achieve operating revenue of 50 billion yuan by 2030. The bank said the company's profitability is expected to enter a release period.
Zhonglian Development Holdings (00264): Zhonglian Development Holdings previously issued announcements on July 26 and August 3. Its subsidiary signed two pre-manufactured AIDC module procurement agreements with Brightray Veridian, an overseas independent third-party customer. The two orders were worth US$24.98 million and US$68 million respectively, with a cumulative total of US$93 million (approximately HK$731 million). The project delivery site was located at the AIDC project site in Johor Bahru, Malaysia.