Ping An Securities·2025-07-04 08:20Group 1 - The report highlights that the domestic large model capabilities are improving, with applications focusing on three main areas: finance, office, and AI agents [2][42] - The computer industry has shown signs of recovery, with a significant increase in revenue and profit in Q1 2025 compared to the previous year, indicating a fundamental turning point [6][19] - The demand for intelligent computing power is strong, and domestic AI chip manufacturers are seizing development opportunities due to the inability to import advanced AI chips from the US [3][26] Group 2 - The report notes that the intelligent driving market in China is rapidly expanding, with a significant shift towards higher-level commercial applications expected soon [3][28] - The performance of domestic large models, represented by DeepSeek, is now comparable to leading global models, and their lower costs are expected to accelerate their adoption across various sectors [35][42] - The report emphasizes the importance of AI in the financial sector, with a positive attitude towards AI investments among financial institutions, indicating a potential market worth hundreds of billions [43][47] Group 3 - The computer industry has outperformed the market, ranking 6th among 31 sectors, with a year-to-date increase of 7.85% as of June 25, 2024 [19][22] - The report indicates that the valuation of the computer industry is currently above historical averages, with a TTM price-to-earnings ratio of 82.9, the highest among all sectors [26][27] - The report suggests that the future of the AI industry in China is promising, driven by government support and advancements in domestic AI technologies [28][30]