AI powers Chinese tech giant ZTE’s Q1 results, company reports

Chinese tech giant ZTE is leveraging artificial intelligence across its business segments to drive financial growth and expand its market position. The company’s Q1 2025 results demonstrate how strategic AI integration is helping technology providers diversify revenue streams beyond traditional telecommunications infrastructure, particularly as global demand for AI-powered solutions accelerates across enterprise and consumer markets.

The big picture: ZTE reported CNY 32.97 billion ($4.50 billion) in Q1 2025 revenue, representing a 7.8% year-over-year increase as the company successfully capitalized on AI-driven market opportunities.

• Net profit reached CNY 2.45 billion, reflecting the company’s successful execution of its AI strategy across multiple business segments.
• The company’s “second-curve” businesses, which include newer growth initiatives, now account for over 35% of total revenue, indicating successful diversification beyond traditional telecom equipment.

Key strategic focus: ZTE is pursuing AI opportunities in four key domains: communications infrastructure, computing infrastructure, AI terminals, and industry applications.

• The company maintained a leading market position in both wireless and wired connectivity products while expanding its share with international operators.
• In the computing power segment, ZTE benefited from increased investments in computing infrastructure, driving rapid growth in servers and storage revenue.

Consumer AI offerings: ZTE is embedding artificial intelligence directly into consumer products with four distinct AI-powered home solutions.

• The company’s domestic strategy includes AI home network systems, AI home computing devices, AI smart screens, and AI home robots.
• These on-device AI applications represent part of ZTE’s push to extend artificial intelligence capabilities to end-user products and experiences.

Looking ahead: ZTE plans to continue investing in artificial intelligence technologies with a specific focus on “connectivity + computing power” and practical AI solution development.

• The company is actively seeking global partnerships to accelerate AI innovation and application across its business segments.
• This strategy positions ZTE to capitalize on growing demand for integrated AI solutions that combine network infrastructure with computing capabilities.