Hesai(US:HSAI) SINOLINK SECURITIES·2025-05-19 03:00Investment Rating - The report suggests a focus on leading domestic generative large model companies such as iFLYTEK, and highlights potential in AI hardware applications with recommendations for companies like Yingshi Network and Hongsoft Technology [2] Core Insights - The AI industry chain is expected to maintain high prosperity, with computing power sustaining its high level and application accelerating upward. Other sectors such as intelligent driving, software outsourcing, and the Huawei supply chain are also projected to perform well [11][10] - 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, as well as the gradual acceptance of AI applications by users [11][10] - The report emphasizes the importance of traditional business recovery and the acceptance of new AI business models in driving performance [11] Summary by Sections 1. Weekly Insights - The report discusses the launch of image generation features by Manus and the introduction of video generation models by Huoshan Engine, indicating advancements in AI capabilities [11] - It notes that approximately 90% of computing demand comes from domestic markets, primarily from government and large business clients, suggesting a lag in demand recovery [11] 2. Sector Performance - The report categorizes the prosperity of various sectors, indicating that AI, intelligent driving, and software outsourcing are at high levels, while sectors like construction and medical IT are at lower levels but showing signs of recovery [10][12] 3. Market Review - From May 12 to May 16, 2025, the computer industry index fell by 1.26%, underperforming compared to the CSI 300 index [16] 4. Upcoming Events - The report highlights several upcoming industry events, including the VR/AR Expo and Google I/O, which may present investment opportunities [30][31]