智通财经网·2025-08-31 05:48Core Viewpoint - The current market trend is centered around artificial intelligence (AI), particularly in upstream hardware infrastructure, with a notable focus on overseas optical modules and PCBs, which began to rally in June. Domestic computing power, led by Cambrian, started to catch up in mid-August. The strong profitability of upstream hardware is causing anxiety among investors holding cash, while the lack of explosive applications in the downstream is limiting investment choices [1][2][3]. Market Dynamics - The AI market is experiencing a robust phase, with the potential for significant growth in downstream applications, which is expected to be a key driver in the mid-term. The current lack of clear commercial models and blockbuster products in the application sector is a primary reason for the stagnation in downstream performance [1][2][3]. - The historical context of the "Internet+" wave illustrates that the eventual explosion of AI applications is inevitable, as seen in previous tech trends. The application side is anticipated to have a broader growth space compared to upstream hardware [3][4]. Investment Recommendations - In the current market environment, it is suggested to consider the downstream application sectors as "call options" for potential growth, particularly in areas such as AI + innovative pharmaceuticals, AI + military applications, AIGC, edge AI, humanoid robots, and intelligent driving [2][20][23]. - The report emphasizes the importance of identifying key catalysts that could trigger market interest, such as advancements in domestic AI models or significant policy support for AI applications [22][23]. Performance Analysis - The performance of various sectors from January to August shows that upstream hardware, particularly communication hardware like optical modules and circuit boards, has significantly outperformed the market, while downstream applications have lagged behind [21]. - The report highlights that the AI application sector is still in its early stages, with a lack of major players emerging, which could lead to a broad-based rally once a few key applications gain traction [12][22]. Policy and Market Support - Recent government policies, such as the "Artificial Intelligence + Action Opinions," are expected to provide a framework for the development of AI applications, similar to the earlier "Internet+" initiatives. This indicates a strong commitment to fostering AI growth in various sectors [13][14]. - The domestic market is well-positioned for AI application growth due to a large user base and favorable resource conditions, which are essential for the transition from quantity to quality in AI applications [14][15].