Investment Rating - Industry Investment Rating: Overweight [1] Core Insights - The report highlights the strong momentum in AI development both domestically and internationally, with a focus on opportunities in the Hongmeng ecosystem [4][43] - Google announced the release of the upgraded Gemini 2.5 Pro AI model, which is available through Gemini API and Google's Vertex AI and AI Studio platforms [3][45] - Alibaba Cloud has open-sourced the Qwen3 series models, which have shown superior performance in various benchmarks compared to well-known models like OpenAI's [5][44] Market Performance Review - From May 6 to May 9, 2025, the Shanghai Composite Index rose by 1.92%, while the ChiNext Index increased by 3.27%. The CSI 300 Index saw a rise of 2%, and the Hang Seng Tech Index fell by 1.22% [23][36] - The AI index increased by 2%, and the cloud computing index rose by 2.19%, indicating positive trends in these sectors [23][36] AI Developments - Google is set to launch the NotebookLM mobile app on May 20, 2025, which is currently available for pre-order [43] - Tencent has released and open-sourced a new multimodal video generation tool called Hunyuan Custom, which integrates various input modalities [44] - Kimi has launched a new general audio model, Kimi-Audio, supporting multiple audio-related tasks [44] Semiconductor Sector - TSMC reported a sales figure of 349.57 billion New Taiwan Dollars for April 2025, marking a year-on-year increase of 48.1% and a month-on-month increase of 22.2% [45]

Investment Rating - Industry Investment Rating: Overweight [1] Core Insights - The report highlights the strong momentum in AI development both domestically and internationally, with a focus on opportunities in the Hongmeng ecosystem [4][43] - Google announced the release of the upgraded Gemini 2.5 Pro AI model, which is available through Gemini API and Google's Vertex AI and AI Studio platforms [3][45] - Alibaba Cloud has open-sourced the Qwen3 series models, which have shown superior performance in various benchmarks compared to well-known models like OpenAI's [5][44] Market Performance Review - From May 6 to May 9, 2025, the Shanghai Composite Index rose by 1.92%, while the ChiNext Index increased by 3.27%. The CSI 300 Index saw a rise of 2%, and the Hang Seng Tech Index fell by 1.22% [23][36] - The AI index increased by 2%, and the cloud computing index rose by 2.19%, indicating positive trends in these sectors [23][36] AI Developments - Google is set to launch the NotebookLM mobile app on May 20, 2025, which is currently available for pre-order [43] - Tencent has released and open-sourced a new multimodal video generation tool called Hunyuan Custom, which integrates various input modalities [44] - Kimi has launched a new general audio model, Kimi-Audio, supporting multiple audio-related tasks [44] Semiconductor Sector - TSMC reported a sales figure of 349.57 billion NTD for April 2025, marking a year-on-year increase of 48.1% and a month-on-month increase of 22.2% [45]

Group 1: Legal and Regulatory Developments - A U.S. federal judge ruled that Apple violated a previous court order, requiring the company to open its App Store to allow external payment methods, which could change the iOS payment landscape [2] - Apple has appealed the ruling, but developers within the iOS ecosystem can start directing consumers to third-party payment channels for at least two months before the appeal outcome [2] Group 2: Technology and Product Updates - Google launched the upgraded Gemini 2.5 Pro AI model, enhancing capabilities in coding and interactive web application development, available through Gemini API and Google’s Vertex AI [3] - Apple AI is expected to debut in the iOS 18.6 system in China, supported by Alibaba and Baidu, with Baidu's Wenxin Yiyan model as the core engine [3] - OpenAI announced a shift back to a Public Benefit Corporation model, maintaining nonprofit control over its operations, amidst criticism and legal challenges [3] Group 3: Market Strategies and Competition - Apple is changing its iPhone marketing strategy to release lower-end models in the first half of the year and high-end models in the second half, aiming to address competition in markets like China [4] - Tesla reported that over 95% of the parts for its Model 3 and refreshed Model Y are sourced from China, highlighting its reliance on local suppliers [4] Group 4: Corporate Actions and Partnerships - WeRide and Uber announced an expansion of their strategic partnership to deploy Robotaxi services in 15 new international cities over the next five years [6] - Pony.ai and Uber also reached a strategic partnership to integrate Pony.ai's Robotaxi services into the Uber platform, starting in the Middle East [7] Group 5: Industry Trends and Innovations - The global DRAM market saw a 42.5% year-on-year growth in Q1 2025, with SK Hynix overtaking Samsung to become the market leader with a 36.7% share [9] - Guoxin Technology successfully tested its quantum-resistant chip, AHC001, which is designed for high-security applications in finance, communication, and IoT [9]