互联网行业软件定义一切（上）：AI+推动变局；毛利率是估值关键

Investment Rating - The report rates the internet industry as "Leading" [2] Core Insights - The concept of "software-defined" has been included in the "14th Five-Year Plan," marking a new technological revolution and emphasizing the importance of software as the foundation of new-generation information technology, including cloud computing and AI [2][4] - The cloud computing market in China is expected to grow significantly, with a market size exceeding 600 billion RMB in 2023 and projected to surpass 2 trillion RMB by 2027, reflecting a compound annual growth rate (CAGR) of 37% [7][10] - The software industry's overall revenue growth has declined since 2022, indicating a strategic shift towards high-quality and sustainable development, with a focus on AI investments [2][22] Summary by Sections Software as a Foundation - Software is identified as the core of new-generation information technology, crucial for cloud computing and AI technologies [4][5] - The software industry chain includes upstream computing power, midstream basic software, application software, industrial software, and downstream industry applications [5][10] Cloud Computing Market - The cloud computing market structure in China is primarily dominated by IaaS, while PaaS and SaaS are expected to drive future growth [10][12] - The public cloud market in China is projected to grow rapidly, with the public cloud market size exceeding 4.5 trillion RMB in 2023, reflecting a year-on-year growth of 40% [7][10] Investment Opportunities - Future opportunities in China's cloud computing sector lie in GPU cloud and the enhancement of PaaS/SaaS software industry chain investments [2][10] - The report highlights the importance of AI development in reshaping the competitive landscape of the software industry, with companies leveraging AI to enhance efficiency and reduce costs [2][22] Valuation Analysis - The report indicates that the current valuation levels of China's software industry are at historical lows, with a positive correlation between gross margin and valuation levels [2][22] - Companies with gross margins above 70% are identified as having strong investment and valuation support, particularly in sectors like domestic substitution and AI investment [2][22] Industry Trends - The report notes a trend of traditional enterprises moving to cloud computing, which is expected to become a major growth driver for the cloud computing market [22][23] - The integration of AI into software development is anticipated to enhance productivity and create new competitive dynamics within the industry [2][22]