Group 1 - OpenAI plans to release the GPT-5 model in early August 2025, featuring mini and nano versions aimed at unifying language models and reasoning systems, which is expected to accelerate AI experience integration [1] - CEO Altman describes GPT-5 as a significant leap in AI capabilities, potentially enhancing products like Microsoft's Copilot and driving a new growth phase in the AI industry through low-cost API strategies [1] - Multiple domestic AI models were launched last week, including Alibaba's Qwen3-Coder series, iFlytek's upgraded Starfire X1, and ByteDance's GR-3 robot model, indicating a rapid development of the domestic AI ecosystem [1] Group 2 - NVIDIA's H20 chip has resumed supply in China, which may significantly boost the iteration of local AI models by enhancing performance and encouraging investment in computational infrastructure [2] - The H20 chip's advantages in cluster interconnect and software ecosystem are expected to facilitate the rapid deployment of AI in both B-end and C-end scenarios, accelerating the development of the AI industry chain [2] - Given the recent performance of growth styles and the upward trend of domestic M1, the TMT industry chain presents good investment opportunities, with recommendations for various ETFs [2]

Core Viewpoint - The AI terminal industry is undergoing a significant transformation, with smart glasses emerging as a key product that could redefine human-computer interaction and personal data management, potentially becoming the most important mobile entry point after smartphones [2][3]. Group 1: AI Glasses Development - Smart glasses are seen as one of the best carriers for AI implementation, providing practical applications such as calorie counting and navigation [1]. - The "hundred glasses battle" is just the beginning, with smart glasses expected to dramatically increase personal data volume and serve as a sensory hub for human interaction [2]. - Major companies like Rokid and Alibaba are developing advanced features for smart glasses, such as low power consumption, long battery life, and enhanced user experience through innovative technologies [2][3]. Group 2: Traditional Terminals and AI Integration - The integration of AI into traditional terminals is progressing through three stages: app-based AI, functional AI, and systemic AI, with Huawei's HarmonyOS 6.0 entering the third stage [4]. - Lenovo emphasizes the goal of AI terminals to become true "silicon-based twins," fundamentally changing user interaction with technology [5]. - The industry is characterized by a diverse exploration of AI terminals, which will reshape human-computer interaction and expand service consumption boundaries [5][6]. Group 3: Industry Collaboration and Standards - The Ministry of Industry and Information Technology is working on national standards for AI terminal intelligence grading, focusing on innovation, stability, application development, and ecosystem promotion [6]. - Key industry players stress the importance of building a domestic computing foundation and fostering open collaboration to enhance the AI terminal ecosystem [5][6].

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [5] Core Insights - The 2025 World Artificial Intelligence Conference (WAIC) showcased significant advancements in AI technology, particularly in computing power, algorithms, and applications, indicating a robust growth trajectory for the industry [12][60] - Domestic manufacturers are progressively enhancing their chip performance from inference to training, emphasizing ecosystem support and application scenarios [13][60] - The report highlights the emergence of quantum computing as a disruptive innovation in the computing power industry, with potential for exponential growth in computational capabilities [38][39] Summary by Sections 1. Industry Overview - The WAIC 2025 featured over 800 companies and more than 3000 cutting-edge exhibits, marking the largest scale in its history [12] - The conference focused on AI technology frontiers, industry trends, and global governance practices [12] 2. Computing Power - Domestic chip manufacturers are evolving from inference-focused AI chips to high-performance training chips, showcasing various industry applications [13] - The report notes the importance of supernodes, integrated machines, and liquid cooling solutions as key trends in the future of domestic AI computing power [18][19] 3. Algorithms - The evolution of large models is highlighted, with a shift towards multi-modal capabilities and the integration of deep reasoning and thinking abilities [43][44] - The report emphasizes the growing importance of AI agents and physical AI, which aim to enable intelligent agents to understand and interact with the real world [43][44] 4. Applications - The report identifies a flourishing landscape for both B2B and B2C AI applications, with significant advancements in areas such as AI glasses, smart driving, and robotics [60] - C-end applications focus on AIGC and productivity tools, while B-end applications emphasize cost reduction and efficiency improvements across various sectors [60][61] 5. Quantum Computing - Quantum computing is positioned as a critical future technology, with companies showcasing solutions that leverage quantum mechanics for superior computational capabilities [38][39]