
Investment Rating - The report maintains a "Positive" investment rating for the media industry [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 (buy), Kuaishou (buy), Tencent (buy), and Baidu (buy), all of which are positioned at the forefront of the industry chain with strong capabilities in cloud consumption and AI model development [3] Summary by Sections AI Model Developments - Alibaba released the Qwen 3 series models, which include 8 parameter sizes and are recognized as the leading open-source models globally, with the largest model Qwen 3-235B-A22B achieving superior performance metrics [8][15] - Baidu's AI Developer Conference introduced significant updates, including the Wenxin 4.5 turbo model, which has enhanced multimodal capabilities and reduced operational costs by 80% compared to previous models [21][24] AI Infrastructure and Policy - The Central Political Bureau emphasized the importance of AI in national technology development, advocating for a collaborative innovation system between industry and academia [32][33] - The report highlights the rapid acceleration in the release of AI models, with over 25 new models launched each quarter since Q2 2024, indicating a strong ongoing trend in AI technology advancement [36] Algorithm Innovations - Kuaishou introduced a new reinforcement learning algorithm, SRPO, which significantly improves training efficiency, achieving superior performance in mathematical and coding tasks with only 10% of the training steps compared to previous models [53]