Investment Rating - The report maintains a "Positive" outlook on the computer industry, indicating expectations for the sector to outperform the overall market performance in the coming months [2]. Core Insights - The domestic AI chip market is experiencing robust supply and demand, with significant developments from companies like DeepSeek, Huawei, and Cambricon, which are forming a comprehensive ecosystem for domestic chips [4][16]. - Key companies such as Kingsoft Office, JD Health, and Taiji Co. are showing strong performance, with Kingsoft's AI commercialization accelerating and JD Health exceeding revenue expectations [4][31][35]. - The report highlights the increasing capital expenditure among domestic internet giants, which is expected to drive demand for domestic computing power [25][27]. Summary by Sections Domestic AI Chips - The release of DeepSeek's V3.1 model emphasizes a shift towards domestic computing power, indicating a gradual transition from reliance on NVIDIA chips [4][6]. - Major domestic chip manufacturers like Huawei, Cambricon, and Haiguang are establishing their ecosystems, with Huawei's Ascend chips nearing the performance of NVIDIA's H100 [17][19]. - The report notes the importance of "super nodes" in AI computing, showcasing advancements in system-level integration and interconnectivity [13][15]. Key Company Updates - **Kingsoft Office**: Reported H1 2025 revenue of 2.66 billion, up 10.1% YoY, with AI-driven growth in its WPS365 platform [31][32]. - **JD Health**: Achieved H1 2025 revenue of 35.3 billion, a 25% increase YoY, driven by strong sales in pharmaceuticals and digital marketing [35][36]. - **Taiji Co.**: Focused on AI solutions for healthcare and legal sectors, with its "ZhiLing" medical AI solution recognized as a benchmark case in the industry [37][38]. Capital Expenditure Trends - Domestic internet giants are expected to increase their capital expenditures, with Q2 2025 showing a significant rise in spending, reflecting strong demand for AI cloud services [25][27][28]. - The report compares domestic and overseas capital expenditure intensity, noting that domestic firms have room for growth in this area [25][26]. Investment Targets - The report identifies several investment targets across different segments, including AIGC applications, digital economy leaders, and AI computing power providers [39].