Ge Long Hui·2025-12-05 05:25Core Insights - The report from China Merchants Securities International predicts an acceleration in AI model integration by 2026, with the U.S. leading in advanced agents and multimodal models like GPT-5 and Gemini 3, while China is rapidly closing the gap through efficient open-source models, creating intense competition in the global market [1] Industry Summary - Cloud capital expenditures remain high to meet the surging demand for inference, indicating a robust investment environment in AI technologies [1] - The emergence of AI agents is expected to trigger a competitive battle for traffic entry points in 2026, highlighting the strategic importance of AI in future market dynamics [1] Company Preferences - The firm maintains a favorable view on large tech companies for their optimal positioning in AI monetization, leveraging strong core businesses to subsidize AI investments and implement monetization strategies [1] - In the Chinese internet sector, the preferred order of segments is advertising > cloud > gaming > value-added services > e-commerce = local services > live streaming, indicating a strategic focus on advertising and cloud services [1] - The firm continues to favor companies with characteristics such as stable profit growth, competitive moats, good risk-reward profiles, and substantial shareholder returns, with top picks being Tencent, Alibaba, and Bilibili [1] - In the U.S. stock market, the preferred order for large tech companies is Alphabet > Meta > Amazon > Microsoft, reflecting a strategic preference based on their capabilities in AI [1]