Investment Rating - The report suggests a focus on leading domestic generative large model companies such as iFLYTEK, and highlights potential in AI hardware applications with recommendations for Hikvision, Hongsoft Technology, and Hesai Technology [3] Core Insights - The report emphasizes the acceleration of AI application deployment, with expectations for improved operational strength in the second half of the year compared to the first half, driven by new technology implementations and operational efficiency [10][11] - It identifies key sectors within the AI industry, including high-growth areas like AI computing power and LiDAR, and stable growth sectors such as software outsourcing and quantum computing [11][13] Summary by Sections 1. Weekly Insights - The report discusses significant advancements in AI models, including Ant Group's release of the trillion-parameter model Ring-1T, which showcases state-of-the-art performance in various benchmarks [10] - It notes that the AI industry is experiencing a recovery phase, with increased market interest in AI applications and a shift towards domestic alternatives and dividend sectors [10] 2. Market Review - From October 13 to October 17, 2025, the computer industry index (Shenwan) fell by 5.61%, underperforming the CSI 300 index by 3.38 percentage points [14] - The report highlights that the computer sector's performance is influenced by market risk preferences and external trade conflicts [10] 3. Key Events Outlook - Upcoming events include the 10th China International Artificial Intelligence Conference and the 27th China International High-tech Achievements Fair, which are expected to present opportunities within the related industry chains [27][28]