Group 1: AI and Multimodal Intelligence - The industry is witnessing accelerated development in multimodal intelligent agents, with a focus on key technologies and applications [2] - Major models such as Grok4, KimiK2, GLM4.5, Genie3, and GPT5 are evolving rapidly, characterized by open-source, low-cost, low hallucination, and multimodal features [2] - The launch of the first assessment for trustworthy AI multimodal agents aims to promote technology development and product implementation [2] Group 2: Computing Power Conference - The 2025 China Computing Power Conference will be held from August 22 to 24 in Datong, focusing on the theme "Building Foundations with Computing Networks, Guiding the Future" [3] - As of March this year, the number of standard computing power racks reached 10.43 million, with intelligent computing power scaling at 748 EFLOPS [3] - The AI computing market in China is projected to reach $25.9 billion by 2025, with a year-on-year growth of 36.2% [3] Group 3: Brain-Computer Interface Investment - OpenAI is considering investing in Merge Labs, a brain chip company exploring gene therapy for brain cell modification [4][5] - The global market for brain-computer interfaces in the medical field is expected to reach between $40 billion and $145 billion by 2030-2040 [5] - The brain-computer interface industry is suitable for medium to long-term investment, focusing on application expansion, technology iteration, and market demand [5] Group 4: HarmonyOS Development - HarmonyOS 5 has surpassed 10 million terminals, marking a significant milestone in its development [6] - Over 30,000 HarmonyOS applications and services are currently in development or updating, with the top 5000 applications covering 99% of user engagement [6] - The release of HarmonyOS 6 is expected to further enhance the ecosystem, attracting more developers and manufacturers [6]

Investment Rating - The report maintains a "Positive" investment rating for the industry [6]. Core Insights - On July 31, 2025, the State Council approved the "Artificial Intelligence+" action plan, encouraging the large-scale commercialization of AI applications across various sectors, indicating an unstoppable trend of AI empowering numerous industries [2][9]. - The report highlights three promising sub-sectors for investment: 1. AI interactive products (AI toys and tools) with significant monetization potential 2. Major companies leveraging advantages in traffic distribution, models, and data to create a commercial closed loop focused on consumer AI agents 3. The potential for domestic markets to replicate successful overseas business models in advertising, e-commerce, and education verticals [2][9]. Summary by Sections Policy Support - The government emphasizes the need for deep implementation of the "Artificial Intelligence+" action, promoting the rapid integration of AI into economic and social development, leveraging China's complete industrial system, large market scale, and rich application scenarios [9]. Technological Advancements - The lifting of restrictions on H20 and advancements from DeepSeek are expected to lower costs and accelerate the evolution of multi-modal AI technologies, further supported by national policies [9]. Market Opportunities - The report identifies a strong potential for monetization in AI interactive products, particularly AI toys, which are expected to commercialize rapidly due to enhanced user experiences and broader audience reach [9]. - Major companies are positioned to capitalize on their strengths in traffic distribution and data, focusing on consumer-facing AI agents to establish a sustainable business model [9]. - The report anticipates that successful overseas business models can be replicated in the domestic market, particularly in the advertising, e-commerce, and education sectors [9].

Market Overview - On July 25, the artificial intelligence large model sector showed localized strength, with Hanwang Technology, Zhizhen Technology, and Insai Group hitting the daily limit, while CloudWalk Technology rose over 11% [1] Events - The 2025 World Artificial Intelligence Conference and the High-Level Meeting on Global Governance of Artificial Intelligence will be held on July 26, 2025, at the Expo Center, with Premier Li Qiang set to attend and deliver a speech [2] - OpenAI is reportedly preparing to launch its flagship model GPT-5 in August, along with mini and nano versions, aiming to create a more powerful system that integrates various technologies and ultimately achieve Artificial General Intelligence (AGI) [3] Institutional Insights - The World Artificial Intelligence Conference (WAIC) has become a significant driving force in the global AI ecosystem since its inception in 2018, with the theme for this year emphasizing global AI cooperation and advocating for technology inclusivity [4] - GPT-5 is expected to be a fully multimodal model supporting various input types, which will significantly increase computational demands and drive hardware construction needs [4] - Domestic models such as Doubao Seed 1.6, Alibaba Tongyi Qianwen, and KimiK2 are flourishing, showcasing the efficiency of domestic models, indicating that Chinese large model companies are not lagging behind in terms of technological essence and talent reserves [4]

Group 1 - The core viewpoint of the article highlights the strong performance of AI hardware and the potential for software applications to follow suit, driven by recent industry developments and favorable catalysts [2][8][13] - AI hardware stocks, such as Nvidia and leading optical module companies, have shown significant gains, indicating a robust market trend [2][8] - The release of H20 chip regulations and the listing of domestic AI chip companies are expected to enhance AI computing resources in China, paving the way for software applications to thrive [2][15] Group 2 - Historical trends suggest that hardware typically leads software in technology cycles, with the current phase expected to follow this pattern, potentially making software the next focus of the AI market [2][3] - The software index has shown a strong correlation with AI market trends, with notable increases in value during key AI market phases, such as a 48.7% rise from January to early April 2023 [7][8] - The software ETF (159852.SZ) is identified as a suitable investment vehicle for those looking to capitalize on AI application growth, given its focus on leading software companies [9][12] Group 3 - The AI application market in China is projected to grow significantly, with the core industry expected to reach 683.2 billion yuan in 2024, reflecting a year-on-year growth of 28.7% [15] - The structure of the software ETF aligns well with the market's focus on enterprise-level AI solutions, which account for 64% of the industry, indicating a strong potential for future growth [15][16] - Major companies in the AI sector are increasing their R&D investments, suggesting a competitive landscape that will drive further advancements in AI applications [15]

Group 1 - The report indicates that the index continues to rise, with a focus on financial and technology sectors, as the market sentiment remains optimistic, leading to a 3.17% increase in the ChiNext index and a 0.69% increase in the Shanghai Composite index [3][15]. - It is recommended to maintain a high position in the market, as the upward momentum may accelerate after the consolidation phase, with financial and technology sectors being the main focus for the second half of the year [4][16]. Group 2 - The report highlights a positive outlook for the artificial intelligence sector, with significant developments expected in the next 1-2 months, including the potential release of OpenAI's GPT-5 and the success of KimiK2 as a leading open-source model [5][17]. - Robotics, as a key application area of artificial intelligence, is also expected to rise alongside AI, with additional opportunities in other technology segments such as innovative pharmaceuticals, military industry, stablecoins, nuclear fusion, and deep-sea economy [6][18]. Group 3 - The report notes that while the anti-involution theme may see short-term fluctuations due to policy expectations, its overall sustainability is limited, suggesting a focus on steel and non-ferrous metals for mid-term investment potential [7][19]. - The financial sector is identified as a crucial component for index growth, with recommendations for low-cost entry during the current consolidation phase, alongside a cautious approach to the real estate sector as risk assessments may begin to decline [8][20].