Investment Rating - The report maintains an "Overweight" rating for the computer industry, expecting the industry index to outperform the market index by over 10% in the next six months [2][33]. Core Insights - The report highlights a competitive landscape in AI applications among major internet companies, with significant cash giveaways during the Spring Festival to attract users and enhance engagement with AI products. This marks a new phase in AI application competition, aiming for widespread adoption and commercialization [2][28]. - The computer industry index has shown a decline of 5.32% over the past two weeks, underperforming the CSI 300 index by 5.37 percentage points, ranking last among 31 sectors. However, it has increased by 9.08% in January, outperforming the CSI 300 index by 6.40 percentage points [10][20]. - The current price-to-earnings (PE) ratio for the SW computer sector stands at 59.79 times, placing it in the 96.66 percentile for the past five years and 91.70 percentile for the past ten years, indicating high valuation levels [20][22]. Summary by Sections Industry Performance Review - The SW computer sector has experienced a two-week decline of 5.32%, ranking 31st among 31 sectors. In January, it rose by 9.08%, outperforming the CSI 300 index by 6.40 percentage points [10][13]. Valuation Situation - As of January 29, 2026, the SW computer sector's PE TTM is 59.79 times, indicating a high valuation compared to historical data [20][22]. Industry News - Major announcements include Tencent's cash giveaway of 1 billion RMB for the Spring Festival, the launch of new AI models by Alibaba and ByteDance, and price increases for server CPUs by Intel and AMD due to high demand [22][24][25]. Company Announcements - Notable company forecasts include iFlytek expecting a net profit of 785 million to 950 million RMB for 2025, and SuperMap Software projecting a profit turnaround from a previous loss [25][26][27]. Weekly Insights - The report emphasizes the strategic moves by leading internet companies to capture AI traffic during the Spring Festival, suggesting a focus on investment opportunities related to AI applications and partnerships with leading firms [28][29].

Market Overview - On January 28, the Shanghai Composite Index rose by 0.27%, the Shenzhen Component Index increased by 0.09%, while the ChiNext Index fell by 0.57% [1] - The total market turnover reached 2.99 trillion yuan, an increase of 70.8 billion yuan compared to the previous trading day, with over 3,600 stocks declining [1] Sector Performance - The sectors that performed well included precious metals, gold, coal chemical, and phosphate chemical, while sectors such as biopharmaceuticals, medical devices, and photovoltaic equipment saw declines [1] Notable Stocks - Silver Yunnan (601212) saw a price increase of 10.04% to 13.81 yuan, with a turnover rate of 5.42% [2] - Sichuan Gold (001337) increased by 10.00% to 66.86 yuan, with a turnover rate of 8.95% [2] - Zhao Jin Gold (000506) rose by 10.01% to 25.93 yuan, reporting a turnaround to profitability [2] - Hunan Silver (002716) increased by 9.98% to 19.40 yuan, benefiting from rising silver prices [2] Trading Dynamics - The top three net buying stocks on the Dragon and Tiger list were Wangsu Technology, Yandong Micro, and Yingfang Software, with net purchases of 834 million yuan, 198 million yuan, and 178 million yuan respectively [5][10] - The top three net selling stocks were Silver Yunnan, Zhongjin Lingnan, and Zhi Te New Materials, with net sales of 692 million yuan, 536 million yuan, and 407 million yuan respectively [6][23] Institutional Activity - Among stocks with institutional involvement, the highest net selling amounts were seen in Good Idea, Hongbao Li, and Sanwei Communication, with net sales of 107 million yuan, 99 million yuan, and 64 million yuan respectively [7][8] Company Highlights - Wangsu Technology announced the launch of its AI assistant Moltbot, which allows users to deploy services quickly without needing to purchase servers or configure environments [9] - Yandong Micro is expected to benefit from a 28% increase in AI server shipments and rising prices across the semiconductor supply chain due to supply-demand imbalances [14] - Silver Yunnan reported a significant increase in gold prices, with spot gold surpassing 5,200 USD per ounce, marking a year-to-date increase of over 20% [18]