Core Insights - The article highlights the significant revenue achievement of Nvidia, reporting $46.7 billion in Q2, signaling the arrival of the AI era and the commercialization of AI across various sectors [3] - The AI advertising sector is identified as a key area for value reassessment in the tech stock market, with emerging players like AppLovin showing exceptional growth [5][7] - The article emphasizes the dual engine growth model of companies like Huya, combining live streaming with AI advertising, which positions them favorably in the evolving market landscape [8] Group 1: AI Commercialization and Market Trends - Since 2025, there has been increasing market focus on the commercialization of AI, particularly in the technology and media sectors, with advertising being a leading area of disruption [3][10] - The advertising sector is experiencing its most significant structural transformation in a decade, driven by the rise of AI algorithms and computational power, which align with advertisers' needs for ROI [12][15] - Emerging players are reshaping the market dynamics, leveraging vertical expertise and agile business structures to outperform traditional tech giants [10][12] Group 2: Company Performance and Valuation - Huya's advertising business, particularly through BIGO Ads, has shown a revenue increase of approximately 29% year-over-year, indicating strong growth potential [13][20] - Despite Huya's promising growth trajectory, its valuation remains significantly lower compared to peers like Mobvista, which has a TTM P/E ratio of 94, while Huya's projected P/E ratios for 2025 and 2026 are only 9.8 and 8.6, respectively [8][20] - The article suggests that Huya's combination of stable cash flow from live streaming and high growth potential from its global advertising platform positions it as a key player in the trillion-dollar advertising market [20] Group 3: Technological Advancements and Competitive Edge - AI is becoming a new barrier to entry in the advertising sector, with advertisers increasingly relying on real-time personalized ads that require robust computational resources [19][20] - Huya's BIGO Ads platform benefits from a unique combination of proprietary and third-party traffic, enhancing its ability to serve diverse advertising needs effectively [16][18] - The integration of AI across the advertising value chain is significantly improving conversion rates for advertisers and revenue generation for developers, solidifying the competitive advantage of companies like Huya [13][20]