Analysis of Driving Factors and Market Prospects for ZTE as a Popular Stock

ZTE Corporation (000063.SZ) has recently made it to the hot list, mainly driven by multiple catalysts. According to external sources, the company’s first-half 2025 revenue increased by 14.5% year-on-year [4], and the growth momentum continued in the first three quarters, reaching 100.5 billion yuan, up 11.6% year-on-year [0], showing a strong growth trend. External sources indicate that the company has obtained European data privacy certification, successfully breaking through barriers in the European market [1], which lays the foundation for its overseas expansion. In terms of technology layout, ZTE demonstrated future 6G technologies at MWC Barcelona 2025, expecting to achieve 100G throughput and zero latency [2][3], while advancing the “All in AI, AI for All” strategy to achieve deep integration of AI and ICT [2]. In addition, the company has won multiple industry awards, including the Light Reading Leading Lights Award 2025 for technological innovation [6], and the Asia Mobile Award 2025 in collaboration with China Mobile [5]. These awards verify its technological leadership. The market reacted positively, with the company’s stock price rising by more than 3% on a single day on November 27 [1]. However, it should be noted that the development of the 5G equipment market has slowed down, and ZTE is facing pressure for the first revenue decline since the U.S. sanctions in 2018 [7], which may affect its profitability.

1. Integration of AI and Communication Technologies
   : ZTE deeply integrates AI into 5G/6G technologies, which not only enhances the competitiveness of existing businesses but also seizes the initiative for layout in the future 6G era [2][3].
2. Overseas Market Breakthrough
   : The acquisition of European privacy certification marks the company’s progress in compliance and is expected to open up growth space in the European market [1].
3. Signal Significance of Technical Awards
   : The acquisition of multiple top industry awards reflects the company’s continuous investment in technological innovation and enhances market confidence [5][6].
4. Industry Transformation Challenges
   : The slowdown of the 5G equipment market forces the company to accelerate its transformation to 6G and AI applications, which is both a challenge and an opportunity [7].

• The slowdown in the growth rate of the 5G equipment market may lead to short-term profit pressure [7].
• Increased industry competition, especially technological competition in the 6G and AI fields [0].

• The breakthrough in the European market provides new momentum for overseas revenue growth [1].
• The integration of AI and communication technologies may spawn new business growth points [2][3].
• The forward-looking layout of 6G technology is expected to occupy a favorable position in the future market [2][3].

ZTE’s popular performance stems from its positive progress in revenue growth, technological innovation, overseas expansion, etc., but it also faces challenges from the slowdown of the 5G market. Investors should pay attention to the company’s subsequent progress in the AI and 6G fields, as well as the effectiveness of overseas market expansion.