Orient Securities·2025-04-14 09:29Investment Rating - The report maintains a "Positive" investment rating for the media industry in China [5] Core Insights - The AI new cycle is expected to drive the continuous advancement of the computing power-algorithm-application ecosystem, leading to increased investment in the Hong Kong internet sector [3] - Key recommended stocks include Alibaba-W (09988, Buy), Kuaishou-W (01024, Buy), and Tencent Holdings (00700, Buy) [3] Summary by Sections AI Industry Dynamics - Alibaba Cloud's AI Power Conference highlighted significant growth in AI demand, with API call volumes increasing nearly 100 times year-on-year and enterprise connections rising from over 100 to nearly 10,000 [12] - The report emphasizes Alibaba's leading position in AI model development, particularly in reasoning and multimodal models, which are crucial for AI agent applications [15][20] AI Model Developments - The latest ranking from Chatbot Arena places Alibaba's Qwen2.5-VL-32B as the top open-source visual understanding model, showcasing its competitive edge in multimodal reasoning [32] - New models from various companies, including Step-R1-V-Mini from Jiyue Xingchen and DreamActor-M1 from ByteDance, demonstrate advancements in multimodal reasoning and video generation capabilities [35] Algorithm Technology - The introduction of Google's A2A protocol and Alibaba's MCP protocol aims to enhance communication and interoperability between AI agents, facilitating better collaboration and efficiency [36][40] - The report notes that the standardization of AI agent protocols is expected to improve the performance and accuracy of AI applications across various sectors [37] AI Application Trends - The Stanford 2025 AI Trends Report indicates that AI application rates have surged, with enterprise adoption rising from 55% in 2017 to 78% in 2024, driven by significant reductions in inference costs [40] - The report highlights that the performance gap between top AI models in China and the US has narrowed, with Chinese models showing competitive capabilities in various benchmarks [56]