Alphabet(US:GOOG) Tianfeng Securities·2025-04-29 02:55Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected industry index increase of over 5% in the next six months [51]. Core Insights - The report highlights a significant shift in AI applications from chatbot-type products to AI Agent-type products among major Chinese internet companies, suggesting a new wave of opportunities in the Chinese AI sector if key models exceed expectations [2]. - Despite concerns about a potential U.S. economic recession impacting AI investments, companies like Google and ServiceNow have reported better-than-expected earnings, alleviating market anxieties about the future of AI [3]. - The report emphasizes the ongoing demand for computing power, with companies like Vertiv raising their annual guidance, indicating sustained high levels of orders [3]. Summary by Sections Key Company Performance - Google: Reported Q1 2025 revenue of $90.2 billion, exceeding Bloomberg's consensus of $89.1 billion, with a net profit of $34.5 billion, a 46% year-over-year increase, and maintained a capital expenditure guidance of $75 billion for the year [28][32]. - Tesla: Q1 2025 revenue was $19.33 billion, a 9% year-over-year decline, falling short of expectations. The company emphasized its long-term strategy of deploying autonomous vehicles and humanoid robots [36]. - ServiceNow: Achieved Q1 2025 subscription revenue of $3.005 billion, a 20% year-over-year increase, driven by strong demand for AI products [42]. - Vertiv: Reported Q1 2025 revenue of $2.036 billion, surpassing expectations, with a 25% year-over-year organic sales growth, indicating robust market demand [46]. Investment Recommendations - The report suggests focusing on major AI model iterations from companies like DeepSeek and Alibaba, which could trigger a new market cycle in Chinese AI [6]. - It recommends monitoring the capital expenditure trends of cloud service providers, as stable spending levels are expected to continue, supporting AI application growth [6]. - Key companies to watch include Google, Microsoft, Amazon, and Tesla, as their financial performances and AI investments will be critical in shaping the industry's future [3].