Core Insights - The MCP protocol is evolving to include interactive user interface (UI) support through the MCP Apps proposal, enhancing the interaction capabilities of AI agents beyond text and structured data [2][10][11] Group 1: MCP Apps Proposal - The MCP Apps proposal (SEP-1865) aims to standardize support for interactive UIs, allowing MCP servers to provide visual interfaces directly to hosts [2][4] - This proposal has received positive feedback from the community, driven by contributions from key players like OpenAI and Anthropic [9][10] Group 2: Enhancements in User Interaction - The MCP Apps Extension introduces a standardized approach for declaring UI resources, linking them to tools, and enabling bidirectional communication between embedded interfaces and host applications [4][18] - The transition from a text-based interaction model to a graphical interface is likened to upgrading a customer service chatbot from text messaging to a smart assistant capable of providing visual dashboards and forms [6][11] Group 3: Standardization and Community Involvement - The current limitations of the MCP server in exchanging only text and structured data hinder the presentation of visual information and complex user input [13][18] - The MCP-UI project, supported by a vibrant community, has demonstrated the feasibility of integrating rich UIs into the MCP architecture, with backing from major companies [15][18] Group 4: Key Design Decisions - The MCP Apps Extension emphasizes security, backward compatibility, and the use of pre-declared resources to enhance performance and safety [20][23][24] - The initial extension specification supports rendering HTML content in a sandboxed iframe, with plans for future support of additional content types [22][24] Group 5: Community Engagement - The MCP community encourages participation in the development of the MCP Apps Extension, providing early access SDKs for developers to build applications [26][27]

Investment Rating - The report maintains an investment rating of "Outperform" with a target price for key stocks such as 688099 (Jingchen Co.) at 97.1 and 688591 (Tailin Micro) at 66.95, both rated as "Buy" [5]. Core Insights - The report highlights that 2026 may be a breakthrough year for AI at the edge, with AIoT expected to lead the industry. Major companies like Apple, OpenAI, and Meta are already positioning themselves in this space, indicating a strong potential for explosive growth in AI-enabled consumer electronics [1][13]. - The semiconductor industry is anticipated to experience a resonance of inventory and innovation cycles in 2026, driven by the gradual rollout of AI terminal products, which will enhance both supply and demand dynamics [2]. - The System on Chip (SoC) sector is set to benefit significantly from the rise of AI terminals, with higher computational power and performance driving systematic growth opportunities. Leading firms in the SoC space are expected to capture excess growth returns during this industry transition [3]. Summary by Sections 1. AI Edge Breakthrough Year - AI at the edge is projected to see rapid growth in 2026, with AIoT leading the charge. The market is witnessing a shift from concept to large-scale commercialization, driven by urgent monetization needs from downstream manufacturers [1][14]. - Major players like Apple are transitioning to an "AI platform ecosystem" approach, enhancing their product offerings and user experiences through AI integration [15][18]. 2. Semiconductor Cycle - The semiconductor industry is expected to experience a dual cycle of inventory adjustment and innovation, with a historical pattern of approximately 60 months for major cycles and 2-3 years for smaller cycles [2]. - The current inventory situation is shifting from passive destocking to proactive restocking, indicating a positive outlook for the semiconductor market [2][19]. 3. SoC Sector - The SoC sector is positioned for significant growth, with AI terminals driving both performance and valuation increases. Leading companies are expected to leverage their technological advancements and customer relationships to achieve superior growth [3][27]. - The report emphasizes a structural growth cycle in the semiconductor and SoC industries, characterized by a clear delineation of opportunities and market dynamics [3]. 4. Investment Recommendations - The report suggests focusing on specific companies within the SoC sector, including Tailin Micro, Jingchen Co., and others in the consumer electronics and storage sectors, indicating a diversified investment approach [4].