Investment Rating - The investment rating for 韦尔股份 (Weir Shares) has been upgraded from Equal-weight to Overweight, with a target price increase from Rmb140.00 to Rmb160.00 [3][4][7] Core Insights - The report analyzes the AI glasses supply chain, highlighting that if AI glasses shipment volumes rise rapidly, several semiconductor companies, including 韦尔股份, 奇景光电 (Etron Technology), and 联发科 (MediaTek), are likely to benefit significantly [3][4][5] - The emergence of AI-driven glasses 2.0 products is noted, with the success of the Ray-Ban smart glasses, which sold over 2 million units since their second-generation launch in September 2023, attributed to advanced AI language models [4][22] - The report identifies System on Chip (SoC) and display semiconductors as key components driving the next generation of AI glasses [5][27] Summary by Sections AI Glasses Market Overview - The smart glasses industry has struggled since the launch of Google Glass in 2012 due to hardware limitations, poor user experience, and lack of killer applications [3][22] - The report expresses optimism about the future of AI glasses, emphasizing their potential to replace some smartphone functions and provide a hands-free experience [22][24] Semiconductor Beneficiaries - Major beneficiaries in the Greater China semiconductor sector include 韦尔股份 (upgraded to Overweight), 奇景光电 (initiated coverage with Overweight), and 联发科 (Overweight) [4][5][27] - The report highlights the importance of SoC and display semiconductors in the development of AI glasses, with high demand expected as the technology matures [27][29] Product Development and Innovations - Meta's upcoming AI+AR glasses, expected to launch in September 2025, will feature cost-optimized components, potentially lowering the bill of materials (BOM) significantly [23][24] - The report notes that Google has also entered the market with its Android XR system, enhancing the capabilities of smart glasses [23][25] Market Dynamics and Future Outlook - The report anticipates that the AI glasses market will see rapid growth, with projections indicating significant shipment increases by 2026 [16][22] - It discusses the competitive landscape, with major tech companies and startups entering the AI glasses space, indicating a growing market [24][25]