Investment Rating - The report suggests a focus on leading domestic generative large model companies such as iFLYTEK, and highlights potential in AI hardware applications, recommending companies like Yingshi Network and Hongsoft Technology [2] Core Insights - The AI industry chain is expected to maintain high prosperity, with computing power sustaining high levels and application acceleration [11] - The report anticipates that overall demand in the second half of the year may be stronger than in the first half, driven by policy and funding support [11] - The report identifies several sectors with varying degrees of prosperity, including AI, intelligent driving, software outsourcing, and financial IT, with some sectors like construction and medical IT showing weaker prospects [11][12] Summary by Sections 1. Weekly Insights - The report discusses the launch of image generation features by Manus and video generation models by Huoshan Engine, emphasizing the flexibility and commercial potential of these technologies [11] - It notes that approximately 90% of computing demand comes from domestic G-end and large B-end users, indicating a lag in demand response to policy changes [11] 2. Sector Performance - The report categorizes the prosperity of various sub-sectors, indicating that AI applications and intelligent driving are accelerating upwards, while sectors like construction IT and medical IT are at a low point [10][12] 3. Market Review - From May 12 to May 16, 2025, the computer industry index fell by 1.26%, underperforming the CSI 300 index by 2.38 percentage points [16] 4. Upcoming Events - The report highlights several upcoming industry events, including the VR/AR Expo in Shanghai and the Google I/O Developer Conference, suggesting potential investment opportunities in related sectors [30][31]