HUAXI Securities·2025-11-16 14:59Investment Rating - Industry rating: Recommended [5] Core Views - The report highlights the significant growth potential in AI applications, particularly in the transition from B2B to B2C for companies like Alibaba, which is expected to see breakthroughs in consumer AI applications by 2026 [1][11] - The domestic chip industry is at a pivotal moment, with the report emphasizing the long-term trend of AI chip localization and the expected increase in domestic computing power share [2][12] - Tencent's strategy focuses on integrating AI into its core services, with a notable reduction in capital expenditures due to external GPU supply constraints, indicating a shift towards monetization of AI applications [3][15] - The report suggests a cautious approach to the TMT sector due to geopolitical uncertainties and market volatility, while maintaining a long-term positive outlook on high-growth areas such as 6G and domestic alternatives [4][16] Summary by Sections Section 1: Alibaba's AI Developments - Alibaba's "Qianwen" app upgrade marks a shift towards consumer AI applications, with significant investment planned for cloud and AI infrastructure [1][10] - The company plans to invest over 380 billion yuan in the next three years, significantly increasing its computing power capabilities [10][11] Section 2: Baidu's AI Chip Strategy - Baidu is launching new AI chips and supernode products, with a focus on enhancing domestic chip capabilities [2][12] - The report identifies several companies that will benefit from advancements in chip manufacturing and architecture [2] Section 3: Tencent's AI Integration - Tencent's capital expenditures have decreased, but it maintains a strong GPU reserve for internal use, focusing on integrating AI into its existing services [3][15] - The company has seen significant growth in user engagement with its AI features across various platforms [14][15] Section 4: Market Outlook - The report advises a neutral allocation in the TMT sector due to short-term valuation corrections, while highlighting long-term growth opportunities in satellite communication and military applications [4][16][7] - Key recommendations include focusing on computing infrastructure and related service providers [16][20]