ZTE (000063 CH) is a defensive play with a long runway for growth, according to a recent report by CMB International Global Markets. The company has made progress in AI development for the B2B sector, with a focus on urban governance, and is set to debut new computational products. ZTE is also capitalizing on the AI momentum spurred by ChatGPT and is on track to launch an AI server for intensive model training. The company has also partnered with China Telecom, UNISOC, and Vivo to achieve the first-ever domestic 5G NTN field test in China, signaling the successful establishment of a bi-directional connection for 5G NTN mobile phones. ZTE is expected to be a key beneficiary in the market for consumer electronics equipped with satellite communications. Additionally, the company is also moving into the next chapter with 5G to 6G technology.
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