The IDC sector, once the hottest investment theme 11 years ago, has been reignited with explosive momentum. In early trading on February 10, A-share computing power concept stocks surged at the opening. Dawei Technology secured its second consecutive daily limit-up, while Tefa Information hit the upper limit. Yacom, Jiangsu Cable, Glodon, Chengdi Xiangjiang, and Yitian Intelligent also advanced. Notably, Meili Cloud skyrocketed within just one minute, locking in a涨停板. People.cn also surged straight to the daily limit. Additionally, short drama gaming and film exhibition sectors experienced a wave of limit-ups. Enlight Media surged by the 20% daily cap, Huace Film and Happiness Blue Ocean rose over 10%, while China Film, Shanghai Film, and Bona Film Group were among more than ten stocks hitting涨停板. Culture and media-related ETFs exploded higher, with two film ETFs touching their daily limits and reaching record highs. Why such a sharp market reaction? Analysts attribute it to the recent surge of AI breakthroughs. One brokerage highlighted that the IDC sector stands to benefit significantly. For instance, ByteDance’s daily token consumption of 50 trillion includes 6.5 trillion from Doubao, 13–14 trillion from Douyin, 4.5 trillion from Jiyi, and 7.5 trillion from APIs. Multimodal AI models are consuming computing power at more than ten times the rate of text-based models. On the news front, ByteDance’s AI video generation model, Seedance 2.0, has recently captivated global attention during its limited testing phase. Its breakthrough capability to generate “cinematic-quality videos from text or images” has made it a focal point across industries. The IDC sector is roaring back to life. Over a decade ago, as the most sought-after investment theme, IDC enjoyed a glorious run. Wangsu Technology, as the sector leader, delivered nearly a hundredfold return during that bull market. Subsequently, the industry entered a prolonged downturn. Recently, however, Wangsu Technology has quietly rebounded, nearly doubling in value. Today, the entire sector erupted. During the morning session on February 10, People.cn led the rally, hitting the daily limit immediately after opening. Meili Cloud followed with a vertical surge, locking in涨停板 within one minute. Dawei Technology secured its second consecutive limit-up, and Tefa Information also涨停. Wasu Media, Xinhuanet, Dataport, and Hyperstrong advanced in tandem. Simultaneously, short drama gaming and film exhibition sectors witnessed a涨停板 frenzy. Enlight Media surged by the 20% cap, Huace Film and Happiness Blue Ocean rose over 10%, while China Film, Shanghai Film, and Bona Film Group were among more than ten stocks hitting涨停板. Culture and media ETFs surged, with Film ETF (159855) and Film ETF (516620) touching their daily limits and reaching all-time highs. The IDC rally is driven by one core logic: massive language models are fueling exponential growth in token consumption, drastically increasing computing power demand. This thesis was reinforced recently by Seedance 2.0, an AI video generation model that has gone viral globally. Developed by ByteDance, Seedance 2.0 can produce cinematic videos from text or images, generating multi-shot sequences with native audio in under 60 seconds based on detailed prompts or uploaded images. Moreover, the market holds high expectations for major model releases during the “Spring Festival season.” Reports indicate that the Qwen team has submitted relevant support PRs to the Hugging Face Transformers codebase, confirming the imminent release of the next-generation open-source model Qwen 3.5. DeepSeek V4, Zhipu’s GLM5, Minimax’s Minimax 2.2, and Yang Zhilin’s KimiK3 are also highly anticipated. The bullish narrative for IDC continues to strengthen, driven by the urgency of large model commercialization. According to The Information, OpenAI reported $4.3 billion in revenue but $13.5 billion in losses in the first half of 2025, with projected computing costs reaching hundreds of billions by 2028. Last November, multiple media outlets reported that OpenAI plans to invest approximately $1.4 trillion in data center construction over the next eight years. Based on cash flow projections, OpenAI and Anthropic may continue to experience net outflows for another four to five years. Consequently, large model commercialization is set to accelerate. ChatGPT’s first ads are scheduled to launch in early February 2026, initially targeting free and Go subscribers with CPM-based pricing. China Securities Co., Ltd. believes that service providers and related companies will benefit, with larger-scale AI revenue realization expected by 2026. As leading overseas model companies roll out ad monetization, domestic tech giants are likely to follow swiftly, highlighting opportunities in the advertising and marketing sector alongside the commercialization efforts of top-tier model developers. The faster commercialization progresses, the greater the demand for computing power. Recent expectations of rising commodity prices have also begun to materialize, further boosting IDC sector sentiment. CITIC Securities notes that since 2026, frequent catalysts have driven the IDC industry’s high growth trajectory. Currently, domestic AI chips like Huawei’s Ascend and Cambricon are continuously improving in performance, while large models such as Alibaba’s “Qwen,” Tencent’“Hunyuan,” and ByteDance’s “Doubao” are iterating rapidly. AI applications in media, gaming, education, and healthcare are gradually being piloted and deployed, accelerating the formation of a “chip-model-application” commercial闭环. This trend is expected to drive increased computing investments by domestic cloud providers, with Alibaba leading the charge.
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