Investment Rating - The report maintains a "Recommended" investment rating for the computer industry [2][11]. Core Insights - The WAIC 2025 showcased significant advancements in domestic AI technology, indicating a shift from being a "follower" to a "leader" in the AI sector. This includes developments in domestic computing power, large models, and AI applications, which are expected to evolve in a synergistic manner [11]. - Huawei's unveiling of the Ascend 384 SuperNode at WAIC 2025 represents a major leap in domestic AI computing capabilities, with over 80 mainstream large models already adapted for this technology. This architecture is anticipated to enhance the competitiveness of domestic computing power [7][11]. - The launch of the new 321 B-MoE large model by Jieyue Xingchen is set to open a new round of competition in multi-modal models, emphasizing the trend of "open-source + extreme inference efficiency" in domestic large model iterations [7][11]. - Alibaba Cloud's Baolian platform, recognized at WAIC 2025, has integrated over 200 mainstream models and attracted more than 200,000 developers, indicating a rapid acceleration in the commercialization of domestic AI applications [7][11]. Summary by Sections Domestic Computing Power - The Ascend 384 SuperNode features a high-bandwidth, low-latency interconnection among 384 NPUs, addressing communication bottlenecks within clusters and enhancing performance for model training and inference [7]. - The performance of SGLang and DeepSeek on the CloudMatrix384 has surpassed their performance on NV H100 and H800, showcasing the potential of domestic computing architectures [7]. Large Models and AI Applications - The 321 B-MoE model is expected to achieve three times the inference efficiency of DeepSeek-R1 on domestic chips and a 70% throughput increase on NVIDIA Hopper, highlighting the competitive edge of domestic models [7]. - The trend of open-source large models combined with domestic chips is projected to accelerate the growth of AI applications in China [7]. Key Companies to Watch - The report suggests focusing on companies such as Hengwei Technology (603496.SH), Youke De-W (688158.SH), YunSai ZhiLian (600602.SH), and Data Port (603881.SH) for domestic computing power. For large models and AI applications, companies like Dingjie Zhizhi (300378.SZ), HanDe Information (300170.SZ), and SuoChen Technology (688507.SH) are highlighted [11].

Core Insights - Nvidia Corp has become the world's most valuable company in history, with shares reaching a record high of $160.98, reflecting a 19.1% increase since the start of 2025 [1] - Historically, Nvidia has performed well in the third quarter, finishing positively in eight out of the last ten years, with an average return of 14.4% during this period [3] Company Performance - Nvidia's stock performance in the third quarter has averaged a return of 14.4%, and if it continues this trend, shares could potentially reach $184.16 [3] - The Schaeffer's Volatility Index (SVI) for Nvidia is at 32%, indicating low volatility expectations among options traders, ranking in the low 1st percentile of its annual range [4] Comparative Analysis - Among S&P 500 stocks, Nvidia has a return of 14.38% in the third quarter, making it one of the best performers in the Technology Hardware & Equipment sector [4]

Core Insights - Alphabet Inc (GOOGL) shares are currently trading at $178.44, down 0.7%, with a year-to-date deficit of 5.7% and facing resistance at the $180 level [1] - Historically, July has been a favorable month for GOOGL, averaging an 8.42% gain and finishing higher 90% of the time over the past decade [2] Stock Performance - GOOGL's recent performance shows a pullback influenced by the 50-day moving average, but there is potential for recovery towards February highs [1] - If GOOGL achieves its historical average gain for July, the stock could rise above $193 for the first time since early February [2] Options Market - The Schaeffer's Volatility Index (SVI) for GOOGL is at 26%, ranking in the 13th percentile of its annual range, indicating low volatility expectations from options traders [4]

Group 1 - The China Securities Computer Theme Index (930651) has shown a positive trend, with a 0.64% increase as of June 26, 2025, and notable gains in constituent stocks such as Langxin Group (300682) up 6.56% and Hengsheng Electronics (600570) up 5.57% [3][4] - The Computer ETF (159998) has experienced continuous inflows, with a net inflow of 1.52 billion yuan yesterday, totaling 1.78 billion yuan over the past week, reaching a record high in both scale at 32.87 billion yuan and shares at 3.678 billion [3][4] - The top ten weighted stocks in the China Securities Computer Theme Index account for 47.62% of the index, with Hikvision (002415) leading at 8.01% [5][7] Group 2 - The U.S. Senate passed the GENIUS Act on June 17, 2025, aimed at establishing a regulatory framework for stablecoins, while Hong Kong's Stablecoin Ordinance will take effect on August 1, 2025 [4] - Analysts suggest that the global regulatory landscape for stablecoins is improving, which may lead to a more compliant and robust development of the stablecoin industry, highlighting investment opportunities in companies involved in cross-border payments and digital currencies [4] - The Computer ETF closely tracks the China Securities Computer Theme Index, which includes companies involved in information technology services, application software, system software, and computer hardware [4]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the market by more than 5% over the next six months [22]. Core Insights - The report highlights significant advancements in AI technology, particularly with the DeepSeek R1 model, which has shown improved performance in complex reasoning tasks and is now comparable to leading international models [3][4]. - NVIDIA's revenue for Q1 FY26 reached $44.1 billion, reflecting a 69% year-over-year increase, driven by strong global AI computing demand [6][7][9]. - The report emphasizes the potential for dual growth in performance and valuation within the computer industry, driven by increasing demand and technological advancements [18]. Summary by Sections Industry News and Commentary - DeepSeek R1 has completed a minor version upgrade, enhancing its reasoning capabilities and achieving superior results in various benchmark tests, positioning it as a leading domestic model [3][4]. - NVIDIA reported a Q1 FY26 revenue of $44.1 billion, with a 12% quarter-over-quarter increase and a 69% year-over-year increase, indicating robust demand for AI computing [6][7][9]. Key Company Announcements - Several companies, including Haiguang Information and Zhongke Shuguang, have announced significant asset restructuring plans [11]. - Yonyou Network has completed the filing for full circulation of its unlisted shares, while New Guodu has proposed a stock option incentive plan [11]. Weekly Market Review - The computer industry index rose by 1.77% this week, outperforming the CSI 300 index, which fell by 1.08% [12]. - The overall P/E ratio for the computer industry stands at 49.8 times, with 255 out of 360 A-share component stocks experiencing price increases [15]. Investment Recommendations - The report recommends focusing on several sectors within the computer industry, including the Xinchuang sector, Huawei supply chain, AI sector, financial IT sector, and low-altitude economy sector, highlighting specific companies for investment [18].

Summary of Conference Call Records Industry Overview - The conference call discusses the **computer industry** and its recent performance, highlighting a significant recovery in market sentiment, particularly in the **financial technology** sector related to stablecoins. The computer industry recorded a **15% revenue growth** in Q1 2025, indicating an improvement in market conditions despite seasonal influences [1][5]. Key Points and Arguments - **Market Sentiment Recovery**: The computer industry's trading volume reached over **1.2 trillion RMB**, ranking it alongside the electronics sector, with an index increase of over **3%**. This reflects a resurgence in market interest and investment enthusiasm [3]. - **Performance Expectations**: Despite a poor performance in 2024, the **Q1 2025** revenue growth signals a turning point. AI contributions are expected to materialize in Q3 and Q4, with many companies still in the proof of concept (POC) and demo stages [5]. - **Investment Recommendations**: The current holding ratio in the computer sector is about **3%**, with significant room for increase compared to historical highs. Long-term recommendations focus on AI and self-controlled sectors, while short-term suggestions emphasize companies showing signs of recovery or improved core business performance [6][7]. Company-Specific Insights - **Newland**: Expected profit for 2025 is between **1.3 billion to 1.4 billion RMB**, with a PE ratio of **20x**. The company is focusing on digital identity verification, which is anticipated to drive growth [1][8]. - **Rui Ming Technology**: Low overseas revenue exposure may lead to better-than-expected Q2 results, with an annual profit close to **400 million RMB** [1][8]. - **RiLian Technology**: Specializes in X-ray detection equipment, with a **39%** compound annual growth rate (CAGR) in revenue over the past four years and a **60%** CAGR in profit. Expected profit for 2025 is around **250 million RMB** [1][9]. - **Tongxingbao**: Positioned to benefit from digital upgrades in transportation, with significant order potential in 2026 due to upcoming tenders in Jiangsu province [1][10][11]. - **Langxin Group**: Currently in a turnaround phase, focusing on technology and energy sectors, with a projected minimum profit of **500 million RMB** for 2025 [2][12]. Additional Important Insights - **Future Market Expectations**: The market anticipates a positive trend post-2024 annual report releases, although expectations for new technologies like R2 and GPT-5 should be moderated due to potential delays [4]. - **AI Industry Trends**: The AI sector remains a key focus, with recommendations for companies involved in computing power and applications, such as **Haiguang Information** and **Kingsoft** [16]. - **Self-Controlled Sector**: Companies like **Huada Jiutian** and **Dameng Data** are highlighted as key players in the self-controlled domain, which remains crucial regardless of geopolitical tensions [17]. Short-term Stock Selection Suggestions - Suggested stocks for short-term investment include **Newland**, **Rui Ming Technology**, **RiLian Technology**, and **Langxin Group's Tongxingbao**. In the AI sector, companies like **Kingsoft** and **Jindie International Software** are recommended for their clear business directions and market potential [19].

Investment Rating - The report maintains an "Overweight" rating for the computer industry, expecting the industry index to outperform the market index by more than 10% in the next six months [30]. Core Insights - The North American cloud service providers (CSPs) reported significant capital expenditure growth in Q1 2025, with a total of $76.6 billion, reflecting a year-on-year increase of 64%. This indicates a sustained high demand for computing power globally, suggesting investment opportunities in the computing power supply chain [4][27]. - The Shenyuan Computer Index has shown strong performance, with a cumulative increase of 7.35% over the past two weeks, outperforming the CSI 300 index by 5.54 percentage points, ranking third among 31 first-level industries [11][14]. - The current price-to-earnings (PE) ratio for the Shenyuan Computer Index stands at 52.25 times, placing it in the 80.27% percentile over the past five years and 68.16% over the past ten years, indicating a relatively high valuation [20][21]. Summary by Sections 1. Market Review - The Shenyuan Computer Index has increased by 7.35% in the last two weeks, 3.96% in May, and 6.40% year-to-date, consistently outperforming the CSI 300 index [11][14]. 2. Valuation Situation - As of May 8, 2025, the Shenyuan Computer Index's PE TTM is 52.25 times, indicating a high valuation compared to historical data [20][21]. 3. Industry News - Huawei's HarmonyOS-powered computer was unveiled, marking a breakthrough for domestic operating systems [22]. - Major cloud providers increased their capital expenditures significantly, with Meta raising its full-year guidance to $64-72 billion, primarily for AI development [22]. - Lenovo launched its first personal AI service device, showcasing advancements in AI technology [22]. - Alibaba released the Qwen3 model, a leading open-source AI model, enhancing its competitive edge in the AI space [22]. 4. Company Announcements - Notable announcements include Softcom's plan to raise up to 3.378 billion yuan for various projects, and Inspur's Q1 revenue of 46.858 billion yuan, a 165.31% increase year-on-year [25][26]. 5. Weekly Perspective - The report emphasizes the positive outlook for the computing power supply chain, driven by increased capital expenditures from major cloud service providers [27]. 6. Recommended Stocks - The report suggests focusing on companies like GuoDianYunTong, ShenZhouShuMa, and Inspur, which are well-positioned to benefit from the rising demand for computing power and AI technologies [28].

Group 1 - The core viewpoint is that the uncertainty in the global industrial chain due to U.S. tariff policies has intensified, particularly affecting high-tech industries like the new generation information technology sector, but the impact on the computer sector is relatively manageable, leading to a maintained "overweight" rating for this sector [1] - The computer sector's overseas revenue accounts for approximately 12%, with steady growth in overall revenue from CNY 0.89 trillion in 2019 to CNY 1.21 trillion in 2023, and overseas revenue increasing from CNY 113.1 billion to CNY 145.9 billion during the same period [2] - The proportion of overseas revenue in the computer sector has shown a fluctuating upward trend, with percentages of 11.20%, 11.96%, 10.80%, 11.49%, and 12.05% from 2019 to 2023 [2] Group 2 - In 2023, there are 36 computer companies with overseas revenue exceeding CNY 500 million, and 41 companies with overseas revenue accounting for more than 30% of their total revenue [2] - The top five companies by overseas revenue are Hikvision, Nasda, Dahua Technology, Digital China, and Inspur, with overseas revenues of CNY 29 billion, CNY 16.8 billion, CNY 15.3 billion, CNY 13 billion, and CNY 9.5 billion, respectively [2] - The "Belt and Road" initiative and other overseas destinations present significant market opportunities for Chinese digital enterprises, with global ICT product trade accelerating and showing a trend of increased trade among major countries and neighboring regions [3]