Investment Rating - The report maintains a positive investment rating for the software and services industry [12] Core Insights - The current AI narrative is viewed as a new industrial revolution, with Nvidia's founder Jensen Huang predicting the creation of a $100 trillion market driven by the transformation of existing industries and the emergence of new markets for AI manufacturers [7][24] - AI is expected to enhance productivity by freeing humans from mundane tasks, with significant implications for both consumer and enterprise applications [50][55] - Major players in the AI space are focusing on vertical integration, with model manufacturers and chipmakers collaborating to create AI factories and enhance system capabilities [9][10] Summary by Sections Current AI Expectations - The AI transformation is seen as a new industrial revolution, with potential market size reaching $100 trillion driven by changes in large-scale enterprises and the emergence of AI manufacturers [7][24] - AI is reshaping how large companies operate, with significant revenue streams now driven by AI technologies [24][28] Birth of Super Applications - Super applications are likely to emerge from major tech giants, focusing on traffic entry points and user engagement [8][55] - The ultimate goal of technological advancement is to liberate humans from necessary labor, allowing for a focus on higher-value tasks [55][56] Strategic Positioning of Major Players - Major AI companies are pursuing vertical integration strategies, combining model development with platform and operating system creation [9][10] - The competition for traffic entry points is intensifying, with companies vying for control over user interactions and data [58][59] Focus Areas for Investment - The report highlights three key areas for investment: AI factories, traffic entry points, and companies that can quickly realize labor revolution scenarios [10] - Companies that can leverage AI for long-term value, particularly in cloud computing and hardware supply, are recommended for investment [10]