Preface

In a groundbreaking development, two major players in the Artificial Intelligence sector have embarked on strategic collaborations, sending their stocks soaring. This article explores the details and implications of these industry-shaking partnerships. Keep reading to discover how these companies are redefining the AI landscape and what it means for the future of tech stocks.

Lazy bag

The new strategic partnership between SenseTime and Cambricon sparks a market rally, emphasizing joint hardware and software advancement, leading to industry-wide transformations.

Main Body

Recently, SenseTime and Cambricon Technology Co., Ltd. have signed a strategic agreement focusing on the joint optimization of software and hardware, with the goal of building an open and collaborative industry ecosystem. This collaboration represents a significant step towards the enhancement of domestic AI infrastructure and vertical business development.

Following the announcement, SenseTime's stock surged over 5%, while Cambricon saw its share value rise by nearly 4%. In a closely related move, after DeepSeek released its V3.2-Exp model on September 29, Cambricon immediately completed the adaptation and open-sourced its inference engine, showcasing their rapid response capabilities in forming alliances. Huawei Ascend also announced its adaptation to DeepSeek's latest model, marking significant industry-wide alignment and advancements.

The cooperation aims to leverage each company's technical prowess and industry resources, focusing on domestic AI infrastructure development, vertical business expansion, and technological globalization. It actively aligns with the national "AI+" strategic deployment, highlighting SenseTime's leadership in AI model development and infrastructure, coupled with Cambricon's expertise in intelligent computing chips and power infrastructure.

Moreover, both companies aspire to foster a new generation of AI development paradigms, enhancing key elements of self-innovative capacity and ecosystem influence through their combined resources. By utilizing smart computing and AI model technology, the collaboration seeks to establish a synergistic innovation system, accelerating industrial intelligent transformation and nurturing high-growth innovative enterprises within the ecosystem.

In terms of hardware compatibility, the partnership will drive the integration of latest models of software and hardware products, jointly crafting service solutions for the power market. They also target industry-specific all-in-one solutions by aligning their software and hardware capabilities with enterprise service scenarios.

Furthermore, the collaboration explores deep coordination in advantageous regional markets, pooling local industry resources and sector service strengths to create a more vibrant and influential regional AI ecosystem.

As the technology stock market experiences significant fluctuations amidst broader AI industry adjustments, questions arise regarding the sustainability of this tech sector momentum. Analysts suggest we might be in the initial explosive growth phase of tech stocks. Despite recent comprehensive gains not fully priced in, the anticipation remains high, especially for segments like embodied intelligence and lighthouse factories potentially featured in the "Fifteen-Five" plan.

With trade tensions continuing to reinforce the push for domestic alternatives, particularly in software, the ensuing deep-water replacement within the technology sector bolsters this growth narrative. Notably, a new wave of hard technology companies, including Moore threads and Changjiang Storage, is poised for market entry, further enriching investment options and optimizing index compositions.

Western Securities’ Cao Liulong reflects on the past few years where Fed rate hikes led to cross-border capital outflows, while China’s counter-trend interest rate cuts spurred manufacturing CAPEX expansions, intensifying competition. Despite apparent deflation and domestic stock weakening, these conditions have solidified China's global manufacturing competitiveness. As the environment shifts, with Fed rate cuts likely and cross-border capital rapidly returning, China's high-end manufacturing future cash flows could see restoration, marking an impending phase shift from 'ice' to 'fire.'

Key Insights Table