Group 1 - Huawei announced the development roadmap for its Ascend future computing chips and clusters at the Huawei Connect 2025 conference, showcasing significant performance improvements and expansion directions for the chips [1] - According to CITIC Securities, Huawei's upcoming products in 2026 will demonstrate substantial advancements, with new products expected to double computing power annually, highlighting the company's rapid iteration capabilities [1] - Other domestic computing chip manufacturers are also maintaining a fast iteration pace, leading to a general enhancement in product competitiveness [1] Group 2 - The rapid development of domestic computing power is not an isolated phenomenon in the AI industry upgrade process, as the capabilities of computing chips are improving quickly alongside the continuous upgrading and iteration of domestic large models [2] - The DeepSeek V3.1 model, designed for the next generation of domestic chips, utilizes UE8M0 FP8 parameter precision, indicating a collaborative advancement between computing power and models to drive domestic AI industry progress [2] - The revenue share of AI businesses in related companies is showing a quarterly upward trend, with downstream applications gradually reflecting in revenue segments such as cloud computing [2]

Core Insights - Global stock markets have rebounded approximately 28% since April, driven by various agreements and legislation in the U.S. However, recent concerns over large tech companies' valuations may increase market uncertainty and volatility [3][10] - The "Six Investment Paths in Europe" theme includes defensive companies benefiting from rising market volatility, firms gaining from increased German fiscal spending, and those profiting from expanded defense budgets [4][10] - High-quality dividend stocks in Switzerland are viewed as beneficial for enhancing portfolio yield [5][10] Asia Market Opportunities - The Chinese tech sector is expected to benefit from the growing application of artificial intelligence, improving fundamentals, and supportive domestic policies [6][10] - India's relatively closed economy makes its stock market less sensitive to recent U.S. tariff policies, with projected double-digit earnings growth over the next two years [6][10] - Singapore's stock market is attractive due to strong local currency performance, high dividend yields, and ongoing market reforms [6][10] Investment Strategy - Short-term market volatility is anticipated due to economic, political, and technological uncertainties. However, there are selective investment opportunities for those looking to increase exposure to markets outside the U.S. [10]

Core Viewpoint - The article highlights the remarkable performance of Cambricon, referred to as the "first domestic AI chip stock," which has seen a significant surge in stock price and market capitalization, driven by explosive growth in revenue and a shift towards commercialization in the AI chip industry [1][2]. Group 1: Company Performance - Cambricon's half-year report revealed a net profit of 1.04 billion yuan, a turnaround from a loss of 530 million yuan the previous year, with revenue reaching 2.88 billion yuan, marking a staggering growth of 4347% [1]. - The company's contract liabilities soared to 540 million yuan, reflecting a year-on-year increase of 867 times, indicating strong demand and customer interest [1]. Group 2: Market Trends - The AI computing power demand is experiencing explosive growth, driven by the emergence of large models, which have made sufficient computing power a necessity for effective AI applications [1][2]. - The Chinese AI chip market is projected to grow from 21 billion USD last year to 38 billion USD this year, with domestic chip sales increasing from 6 billion USD to 16 billion USD, capturing 42% of the market share [2]. Group 3: Technological Advancements - The release of DeepSeek's V3.1 model, which utilizes the "UE8M0 FP8" parameter precision standard, allows domestic chips to achieve double the performance while being more energy-efficient compared to traditional AI models [2]. - Domestic companies like Cambricon and Huawei are seizing the opportunity to capture market share as AI enterprises shift their chip demands towards local manufacturers [2]. Group 4: Industry Challenges - Despite the growth, domestic chip manufacturers face challenges such as reliance on overseas foundries for high-end processes and increasing competition, which may hinder their progress compared to international leaders [3].

Core Viewpoint - The software service index has shown mixed performance among its constituent stocks, with notable movements in the software ETF and a positive outlook for the AI sector and related industries [1][4][5]. Group 1: Software ETF Performance - As of August 27, 2025, the software ETF has seen a weekly increase of 6.39% [1] - The ETF recorded a turnover of 4.96% during trading, with a total transaction volume of 278 million yuan [4] - Over the past week, the ETF's scale increased by 3.83 million yuan, leading in comparable funds [4] - The ETF has experienced net inflows on 3 out of the last 5 trading days, totaling 5.229 million yuan [4] - The net value of the software ETF has risen by 30.49% over the past three years [4] Group 2: AI and Software Industry Outlook - The computer sector, particularly in areas like AI, intelligent driving, and overseas expansion, is expected to perform well [5] - Profitability is anticipated to benefit from base effects, workforce optimization, and cost savings driven by AI [5] - The second half of the year is projected to show stronger operational intensity compared to the first half, with significant advancements in AI implementation [5] - Key AI application areas include hardware-software integration, consumer software for overseas markets, enterprise services, and private deployment of large models for government [5] Group 3: Major Stocks in Software Service Index - As of July 31, 2025, the top ten weighted stocks in the software service index accounted for 61.39% of the index, with notable companies including iFlytek, Kingsoft Office, and Tonghuashun [5] - The performance of these stocks varied, with iFlytek down by 0.21% and Tuowei Information up by 1.91% [7]

Group 1 - The AI industry chain is experiencing significant activity, with the domestic AI-focused ETF (589520) seeing a peak increase of 7% and a trading volume exceeding 590 million yuan, indicating strong market interest [1] - The ETF has attracted over 112 million yuan in investments over the past four days, highlighting a growing confidence in the domestic AI sector [1] - Key stocks within the ETF, such as Lexin Technology, Yuntian Lifei, and Fudan Microelectronics, have shown substantial gains, with Lexin Technology hitting the daily limit up [1] Group 2 - The State Council has issued an opinion on the "Artificial Intelligence +" initiative, setting ambitious goals for AI integration across six key sectors, aiming for over 70% application penetration by 2027 and over 90% by 2030 [3] - There are reports of potential changes in Nvidia's H20 chip sales plans, with indications that production for the Chinese market may be paused, emphasizing the importance of establishing a domestic chip supply chain [3] - Major tech companies are preparing to launch AI glasses, with Meta's upcoming event expected to significantly exceed initial shipment forecasts [3] Group 3 - Tianfeng Securities highlights the release of DeepSeek's V3.1 model, which is optimized for domestic chips, showcasing the synergy between domestic computing power and models, potentially accelerating the industry's self-sufficiency [4] - The domestic AI ETF (589520) is characterized by a high degree of elasticity, with semiconductor stocks making up nearly half of its top holdings, indicating a strong offensive strategy [4] - The integration of edge and cloud AI is identified as a core trend in AI development, with the ETF's constituent stocks positioned to benefit from the acceleration of AI processes in chips and software [4]

Group 1 - The core viewpoint is that DeepSeek's V3.1 model, utilizing the innovative "UE8M0" FP8 architecture, is optimized for next-generation domestic chips, which is expected to create a synergistic ecosystem in the AI computing power sector [1] - Hong Kong Stock Exchange's research on extending trading hours and advancing T+1 settlement mechanism is anticipated to enhance market efficiency, benefiting the financial IT sector and promoting upgrades in stock trading software and securities IT systems [1] - Three centralized databases have passed secure and reliable assessments, indicating an increase in entry barriers for trusted databases, leading to a further concentration of market share among leading firms [1] Group 2 - The AI application deployment is accelerating, supported by policies such as the computing power vouchers and model vouchers introduced in Shanghai, which further drive industry development [1] - The Computer ETF (512720) tracks the CS Computer Index (930651), which selects listed companies involved in computer hardware, software, and services from the Shanghai and Shenzhen markets to reflect the overall performance of the computer industry [1] - Investors without stock accounts can consider the Guotai Zhongzheng Computer Theme ETF Link A (160224) and Guotai Zhongzheng Computer Theme ETF Link C (010210) [1]

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [13]. Core Insights - The communication sector has seen a significant increase, with a 10.43% rise in the 34th week of 2025, ranking first among major industries. Year-to-date, the sector has risen by 44.59%, also ranking first [2][7]. - Key developments include DeepSeek's launch of the V3.1 model, a major cloud computing deal between Meta and Google worth over $10 billion, and NVIDIA's introduction of Spectrum-XGS technology, all contributing to sustained high demand in AI and computing power [2][11]. Summary by Sections Market Performance - In the 34th week of 2025, the communication sector rose by 10.43%, leading among major industries. Since the beginning of the year, it has increased by 44.59% [2][7]. - Notable stock performances include Shengke Communication (+43.9%), ZTE Corporation (+32.2%), and Ruijie Networks (+32.2%) for gains, while Nanjing Panda (-10.0%), Kesi Technology (-8.9%), and Dingtong Technology (-3.9%) faced declines [7]. Technological Developments - DeepSeek's V3.1 model enhances tool usage and inference capabilities, introducing a "mixed inference" architecture and supporting the UE8M0 FP8 format, which significantly reduces memory usage and improves local inference efficiency [8]. - Meta's six-year cloud computing partnership with Google, valued at over $10 billion, marks one of the largest contracts for Google Cloud, enhancing its service offerings [9]. - NVIDIA's Spectrum-XGS technology aims to connect distributed data centers into a unified AI factory, improving communication performance significantly [10]. Investment Recommendations - Recommended stocks include: - Operators: China Mobile, China Telecom, China Unicom - Optical Modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid Cooling: Yingweike - Fiber Optics: Fenghuo Communication, Hengtong Optic-Electric, Zhongtian Technology - Domestic Computing: Runze Technology, Guanghuan New Network, Aofei Data - AI Applications: Heertai, Tuobang Co., Yiyuan Communication - Satellite Applications: Haige Communication, Huace Navigation [11].

Group 1 - DeepSeek launched the V3.1 model on August 21, which introduces the "UE8M0" innovation aimed at the next generation of domestic chip design. The upgrade includes a hybrid reasoning architecture, improved reasoning efficiency, and enhanced agent capabilities through post-training optimization. The "UE8M0" FP8 is specifically designed for upcoming domestic chips, optimizing core AI operations like matrix multiplication, which is crucial for building a self-sufficient AI ecosystem in China [5][6][7] Group 2 - The Hong Kong Stock Exchange (HKEX) is cautiously exploring a 24-hour trading mechanism and T+1 settlement cycle. The technology system is expected to support T+1 settlement by the end of this year, but implementation will depend on feedback from market participants. This initiative aims to enhance market efficiency and attract global trading participants, aligning with international trends [6][7] Group 3 - On August 22, the China Information Security Evaluation Center announced that three centralized database products passed the security evaluation. The products include those from China Mobile (Suzhou) Software Technology Co., Tianjin Shenzhou General Data Technology Co., and Shenzhen Computing Science Research Institute. The number of evaluated centralized databases decreased from six to three, indicating a rise in entry barriers for trusted databases, which may lead to increased market share concentration among leading vendors [7]

Report Summary 1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report - The current upward trend in the market may continue considering the favorable industry trends, abundant liquidity in the macro - environment, and the dovish expectations of the Federal Reserve [5][6]. - For AI and humanoid robots, the industry trends are clearly certain, and the trends are further strengthened with the explosion of computing power demand and continuous technological iteration and mass - production preparations of robots. Chinese enterprises' competitiveness has significantly increased, and the domestic chain is expected to gain a larger market share and value [5]. - In the current new upward cycle of convertible bonds, as the convertible bond market gradually rises and is in a combination of "high convertible bond price and moderate conversion premium rate", it is recommended to participate in equity - like convertible bonds of 120 yuan and above, focusing on the returns from the rise of the underlying stocks of convertible bonds [6]. 3. Summary by Relevant Catalogs Market Review - **Large - scale Asset Performance**: From August 18 - 22, 2025, the Shanghai Composite Index and the Wind All - A Index rose 3.49% and 3.87% respectively, with the average daily trading volume of the whole market reaching 2.59 trillion yuan. In the industry, communication, electronics, comprehensive, and computer sectors performed well. The S&P 500 rose 0.27%, and the Nasdaq fell 0.58%, fluctuating under the weak US employment and the dovish Federal Reserve [2]. - **Convertible Bond Market Performance**: The CSI Convertible Bond Index rose 2.83%. As of August 22, 2025, the median values of convertible bond price, conversion premium rate, and pure bond premium rate were 135 yuan, 27%, and 28% respectively. Some convertible bonds were subject to early redemption or non - early redemption, and some were subject to downward revision or non - downward revision of terms [2][3]. Market Dynamics - On August 22, 2025, Federal Reserve Chairman Powell hinted at the Jackson Hole meeting that the Fed might cut interest rates in the next few months despite the current inflationary risks, which was beneficial to equity risk assets [4]. - On August 19, 2025, Unitree Technology released a preview poster of a new humanoid robot, indicating a good trend in the humanoid robot industry [4]. - On August 21, 2025, DeepSeek's official Weibo message about a new domestic chip design drove up the domestic computing power chain [4]. - On August 22, 2025, it was reported that NVIDIA might have instructed its suppliers to stop producing products related to the H20 chip, and domestic computing power was expected to gradually replace it [4]. - Next - week events to watch include NVIDIA's Q2 earnings report, Huawei's new product launches, the HarmonyOS ecological conference, and the August PMI index [4]. Convertible Bond View - The convertible bond market continued its upward trend, mainly driven by the possible halt of NVIDIA's H20 production and the news about the next - generation domestic chip design, which might mean that domestic computing power chips could gradually replace NVIDIA's products and boost the expectations of the entire domestic chain. The humanoid robot industry also showed good development trends [5]. - Recommended Beneficiary Targets: Stable targets include Shanghai Bank, Changshu Bank, Hua'an, and Muyuan convertible bonds; flexible targets include Outech, Downturn, Jizhi, Yinlun, Yongsi, Dinglong, Limin, and Zhongchong Convertible Bond 2 [6].