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China's IT Firms Surge as Internet Giants Struggle

1/27/2026

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Story summary
  • China’s information technology firms outpace major consumer-internet companies in earnings estimates, marking a record divide.
  • AI hardware firms Cambricon Technologies and Foxconn Industrial Internet are projected to grow profits through 2027, powered by AI and government support.
  • Alibaba and Meituan face price-war pressures, causing a 12% drop in their net income estimates.
  • The IT sector’s net income estimates rose 50% year-on-year, signaling a shift toward hardware-centric firms amid internet competition.