AI computing power drives electricity demand, grid equipment continues to rise, and many stocks are expected to achieve high growth in performance(List)

On the morning of February 26, the power grid equipment sector performed actively, with Hangdian Shares, Beijing Kerey, Shama Power, and Xinlian Electronics hitting the daily limit up. Zhiyang Innovation and Tongguang Cable rose over 10%, and multiple stocks such as Shuangjie Electric, Sifang Shares, and Ankao Smart Electric followed the rally.

Major US Tech Giants to Sign Electricity Price Protection Commitment

According to media reports, citing foreign sources, Amazon, Google, Meta, OpenAI, Oracle, and other US tech giants will gather at the White House on March 4 to officially sign the “Taxpayer Protection Commitment” announced by Trump in his State of the Union address.

A White House spokesperson stated: “Under this plan, large tech companies will build new AI data centers and procure or purchase their own power supplies, ensuring that Americans’ electricity costs do not increase as demand grows.”

Recently, President Trump stated in his State of the Union speech that the outdated power grid can no longer meet the massive electricity demands of AI development. He has instructed large tech companies to supply their own power and build their own plants to prevent pushing up public electricity prices.

Additionally, Nvidia’s latest financial report and guidance for the next quarter significantly exceeded market expectations, confirming sustained strong demand driven by AI and further boosting market confidence.

Industry insiders point out that the demand for US tech giants to build their own power supplies could drive the export of energy storage and distributed generation technologies. Power equipment and energy storage companies in the A-shares market with international expansion capabilities are expected to benefit.

Increased Investment and Computing Power Boom Resonating

Since 2025, global AI computing power construction has entered an explosive growth phase, leading to electricity shortages in data centers worldwide, with high-performance transformers in high demand. Media reports indicate that in Guangdong, Jiangsu, and other regions in China, many transformer factories are operating at full capacity, with some orders for data center-related business already scheduled through 2027.

Furthermore, State Grid Corporation of China announced that during the 14th Five-Year Plan, fixed asset investment is expected to reach 4 trillion yuan, a 40% increase over the 14th Five-Year Plan period, setting a new record. Funds will focus on ultra-high voltage, smart distribution networks, grid digitalization, renewable energy absorption, and energy storage supporting projects.

Industry analysts note that driven by demand for computing power and policy support, the power grid equipment industry is experiencing substantial growth opportunities.

Dongguan Securities believes that key projects such as smart grids, east-to-west power transmission, and urban-rural grid upgrades require large amounts of grid equipment. They suggest that efficient, energy-saving, and environmentally friendly transformers will become mainstream in the future market, and the transformation and upgrading of power sources and grids will create significant development opportunities for China’s power equipment manufacturing industry.

CICC views that the power shortages in Europe and the US, combined with domestic computing power tokens going overseas, could benefit power equipment companies.

In their latest research report, the firm states that on one hand, China’s power infrastructure is well-developed, and domestic computing power can leverage low-cost electricity to deliver cross-border value, promoting domestic power consumption and demand for power equipment. On the other hand, domestic model vendors deploying cloud services overseas are expected to benefit from deepening overseas markets, with some having overseas production capacity and stable partnerships with internet companies.

Regarding ETF products, the Power Grid Equipment ETF (159326) is the only ETF tracking the CSI Power Grid Equipment Index in the market, with a 90% weight in smart grids and 67% in ultra-high voltage, both the highest in the market. As of midday, the ETF surged 3.07%, with trading volume exceeding 1 billion yuan.

Strong Performance Expected for Several Stocks This Year

According to Eastmoney Industry Sector data, there are currently 138 A-share stocks in the power grid equipment industry, with a total market capitalization exceeding 2 trillion yuan. State Grid South Electric, Siyuan Electric, and Tebian Electric are the top three by size.

This year, the power grid equipment sector has seen two stocks, Yinneng Power and Hanlan Shares, double in value. Hangdian Shares, Sanbian Technology, Ankao Smart Electric, Yuan Dong Shares, and China Western Power have all gained over 60% in the same period.

Looking ahead, based on consensus forecasts from three or more institutions, nine power grid equipment stocks are expected to achieve net profit growth of over 30% this year. Notably, institutions predict that Weiten Electric’s net profit in 2026 could increase by more than 150%, and Yuan Dong Shares’ net profit growth this year could reach 88.27%. Jinpan Technology and Guangxin Technology are also forecasted to grow their net profits by over 50%.

Yuan Dong Shares focuses on intelligent cable networks, smart batteries, and smart airports, and has become a global leader in the cable industry. Guolian Minsheng Securities reports that the company continues to consolidate its industry-leading position and is making breakthroughs in ultra-high voltage, new energy, artificial intelligence, robotics, trusted data spaces, and computing centers, as well as expanding into international markets.

Guangxin Technology, in early interviews with institutions, revealed that its overseas market expansion has made positive progress, with cooperation established with clients in Spain, Russia, Brazil, and other countries, and related orders signed. The two new ultra-high voltage and extra-high voltage insulation material production lines in Ningsha Phase II are ramping up rapidly, with full capacity utilization and nearing full production.

(Source: Eastmoney Research Center)