Investment Rating - The report provides a positive outlook on the TMT sector, suggesting a focus on the recovery of overseas AI chain valuations [3]. Core Insights - Nvidia's B series shipments exceeded expectations, with Q1 FY26 revenue reaching $44 billion, surpassing guidance of $43 billion. The company anticipates Q2 FY26 revenue guidance of $45 billion (±2%). The acceleration in B series shipments is expected to boost the industry's overall outlook, particularly for domestic Nvidia supply chain companies [3]. - The DeepSeek-R1 model update has significantly improved reasoning performance, placing it among the top tier globally. The new model shows a 20% and 15% improvement in mathematical and programming capabilities, respectively, while still having limitations in multimodal recognition [3]. - The domestic EDA (Electronic Design Automation) industry is expected to accelerate its localization process due to potential service halts from U.S. semiconductor software suppliers. This could lead to increased market share for domestic companies [3]. Market Weekly Review - The TMT sector's performance from May 26 to May 30 showed a positive trend, with the computer sector up by 1.77%, media by 1.74%, and communication by 1.53%. The overall TMT sector outperformed the CSI 300 index, which declined by 1.08% [3][5]. - The top-performing sub-industries included vertical application software and other computer equipment, both up by 3.01%, while the optical components and brand consumer electronics sectors faced declines of 2.99% and 1.84%, respectively [3][5]. Industry News and Key Company Announcements - The report highlights significant events in the AI sector, including the upcoming global AI technology conference and various product launches from major companies like Apple and Tesla [17]. - DeepSeek's R1 model has been updated, enhancing its reasoning capabilities and narrowing the gap with leading international models [19]. - The report notes that the Chinese government is actively promoting AI integration in industrial applications, with financial support for companies developing industry-leading AI models [22].

Investment Rating - The report suggests a focus on the recovery of overseas AI chain valuations, indicating a positive outlook for the TMT sector [1]. Core Insights - The TMT sector outperformed the Shanghai and Shenzhen 300 index, with notable gains in the computer and media industries [3]. - Nvidia's B series shipments exceeded expectations, with Q1 FY26 revenue reaching $44 billion, surpassing guidance [3]. - The release of the updated DeepSeek-R1 model positions it among the top global models, showcasing significant improvements in reasoning capabilities [3]. - The acceleration of domestic EDA (Electronic Design Automation) processes is anticipated due to potential service halts from U.S. semiconductor software suppliers [3]. Market Weekly Review - The TMT sector's performance from May 26 to May 30 showed a rise in computer (1.77%), media (1.74%), and communication (1.53%) industries, while electronics saw a decline of 0.59% [3][5]. - The top-performing sub-industries included vertical application software and other computer equipment, both rising by 3.01% [3][5]. Industry News and Key Company Announcements - Nvidia's financial report indicated a strong outlook for Q2 FY26, with expected revenue guidance of $45 billion [3][26]. - The DeepSeek-R1 model's update enhances its reasoning performance, now ranking between Gemini 2.5 Pro and OpenAI-o3 [3][19]. - The potential U.S. ban on EDA software services could accelerate the domestic EDA industry's growth, with a market share currently dominated by three foreign companies [3][19].