Investment Rating - The report maintains an "Overweight" rating for the computer industry, expecting the industry index to outperform the market index by over 10% in the next six months [34]. Core Insights - The report highlights that China's AI model usage has surpassed that of the United States for the first time, indicating a significant shift in the global AI landscape. This trend is expected to drive high demand for AI computing power, presenting investment opportunities in the AI computing supply chain, including AI chips, servers, and liquid cooling technologies [2][28]. Summary by Sections 1. Industry Performance Review - The SW computer sector has seen a cumulative decline of 6.29% over the past two weeks, underperforming the CSI 300 index by 6.02 percentage points, ranking 29th among 31 sectors. For March, the sector has declined by 6.87%, again underperforming the CSI 300 by 5.53 percentage points. However, the sector has increased by 1.15% year-to-date, outperforming the CSI 300 by 0.77 percentage points [10][20]. 2. Valuation Situation - As of March 5, 2026, the SW computer sector's PE TTM (excluding negative values) stands at 55.60 times, which is at the 89.37th percentile for the past five years and the 80.25th percentile for the past ten years [20]. 3. Industry News - Key developments include: 1. China's AI model API usage reached 4.12 trillion tokens, surpassing the US for the first time, and further increased to 5.16 trillion tokens, marking a 127% growth over three weeks [22][28]. 2. OpenAI launched GPT-5.4, enhancing its capabilities in various applications [22]. 3. The US is considering extending AI chip export controls globally, affecting companies like NVIDIA and AMD [22]. 4. The Chinese government is promoting the commercialization of AI technologies and infrastructure development [22]. 4. Company Announcements - Notable announcements include: 1. Yonyou Network plans to use idle funds for wealth management, with a maximum balance of RMB 2.1 billion [25]. 2. Han Yi Co. reported a slight revenue increase and a significant profit growth of 68.27% [25]. 3. Kingsoft Office reported a revenue increase of 15.78% and a net profit increase of 12.03%, driven by AI-related products [25][27]. 5. Weekly Perspective - The rapid rise of domestic AI models is expected to maintain high demand for AI computing power, suggesting a favorable investment environment in the AI computing supply chain [28].

Investment Rating - The report maintains an "Overweight" rating for the computer industry, expecting the industry index to outperform the market index by more than 10% in the next six months [34]. Core Insights - The report highlights that China's AI model invocation volume has surpassed that of the United States for the first time, indicating a significant shift in the global AI landscape. This trend is expected to drive high demand for AI computing power, presenting investment opportunities in the AI computing supply chain, including AI chips, AI servers, and liquid cooling technologies [2][28]. Summary by Sections 1. Industry Performance Review - The Shenwan computer sector has seen a cumulative decline of 6.29% over the past two weeks, underperforming the CSI 300 index by 6.02 percentage points, ranking 29th among 31 Shenwan primary industries. For March, the sector has declined by 6.87%, also underperforming the CSI 300 by 5.53 percentage points. However, the sector has increased by 1.15% year-to-date, outperforming the CSI 300 by 0.77 percentage points [10][20]. 2. Valuation Situation - As of March 5, 2026, the Shenwan computer sector's PE TTM (excluding negative values) stands at 55.60 times, which is at the 89.37th percentile for the past five years and the 80.25th percentile for the past ten years [20]. 3. Industry News - Significant developments include: 1. China's AI model invocation volume reached 4.12 trillion tokens, surpassing the U.S. for the first time, and further increased to 5.16 trillion tokens, marking a 127% growth over three weeks [22][28]. 2. OpenAI launched GPT-5.4, enhancing its capabilities in various applications [22]. 3. The U.S. is proposing regulations to extend AI chip export controls globally, affecting companies like NVIDIA and AMD [22]. 4. The Chinese government is promoting the commercialization of AI and the development of new intelligent terminals [22]. 4. Company Announcements - Notable company announcements include: 1. Yonyou Network plans to use idle funds for wealth management, with a maximum balance of RMB 2.1 billion [25]. 2. Han Yi Co. reported a slight revenue increase of 0.04% year-on-year, with a significant profit increase of 68.27% [25]. 3. Kingsoft Office reported a revenue of RMB 5.929 billion, a 15.78% increase year-on-year, with strong growth in AI-related products [25]. 5. Weekly Perspective - The report emphasizes the rapid rise of domestic AI models and their potential to reshape the global AI competitive landscape, suggesting investors pay close attention to the commercialization of AI models and related investment opportunities in the AI computing supply chain [28]. 6. Recommended Stocks - The report suggests focusing on the following stocks due to their growth potential: 1. GuoDianYunTong (002152.SZ) for its stable growth in fintech and deepening layout in data elements and computing power [29]. 2. Digital China (000034.SZ) as a core partner in the "Kunpeng + Ascend" industry chain [29]. 3. Inspur Information (000977.SZ) for its leadership in AI server markets [29]. 4. TaxFriend (603171.SH) for its comprehensive services in digital government and SaaS [29].

Core Viewpoint - The article discusses the financial performance and market perception of MiniMax, a young AI company, highlighting its significant losses and high employee compensation despite impressive revenue growth [5][6][10]. Financial Performance - In the fiscal year 2025, MiniMax reported a revenue of $79.04 million (approximately 540 million RMB) but incurred a net loss of $1.872 billion (approximately 12.9 billion RMB) [6][10]. - The majority of the reported loss, $1.59 billion, was attributed to the fair value loss of financial liabilities, primarily due to the increase in the company's market value [8]. - MiniMax's adjusted net loss, excluding non-cash losses, was $251 million (approximately 1.73 billion RMB), reflecting a 2.86% increase in losses compared to the previous year [10]. Employee Compensation - MiniMax's employee compensation for 2025 was $84.3 million (approximately 580 million RMB), exceeding the company's total revenue for the year [11]. - The average salary per employee reached 135,000 RMB, with a total workforce of 428 employees [11]. - The company has consistently increased its salary expenditures, with 2023 and 2024 figures at $19.76 million and $44.03 million, respectively [12]. Market Position and Growth - MiniMax has experienced significant financing success, raising approximately $1.5 billion from nearly 30 institutions through seven rounds of funding, with its valuation rising from $200 million to about $4.2 billion by 2025 [9]. - The company has seen its stock price soar since its IPO, reaching a peak market capitalization of over 300 billion HKD [9]. - MiniMax's gross margin improved to 25.4% in 2025, with a year-on-year revenue increase of 159% [10]. Industry Trends - Chinese AI models have recently surpassed U.S. models in API call volume, indicating a significant shift in the global AI landscape [13]. - MiniMax's founder stated the company aims to transition from a large model company to a platform company, with an annual recurring revenue (ARR) exceeding $150 million as of February 2026 [14]. - The article notes that the valuation of Chinese AI assets is undergoing a re-evaluation, with potential economic benefits being underestimated [14].

Investment Rating - The report maintains a "Positive" investment rating for the software and services industry [8]. Core Insights - Recent explosive growth in AI model invocation in China, with OpenRouter platform's invocation surpassing that of the US for the first time [2][5]. - The rapid increase in invocation volume indicates a strong collective rise of Chinese AI manufacturers, not reliant on a single blockbuster product [10]. - The report anticipates accelerated commercialization and international expansion of domestic AI models, driven by significant price competitiveness [10]. Summary by Sections Industry Overview - China's AI model invocation reached 41.2 trillion tokens, exceeding the US's 29.4 trillion tokens for the week of February 9-15, 2026 [10]. - The following week saw further growth to 51.6 trillion tokens, marking a 127% increase over three weeks, while US invocation dropped to 27 trillion tokens [10]. Model Performance - In the week of February 16-22, 2026, four out of the top five models by invocation volume were from Chinese manufacturers, contributing to 85.7% of the total [10]. - Notable models include MiniMax's M2.5, which contributed 14.4 trillion tokens, and KimiK2.5, which saw its revenue exceed its total for the previous year shortly after launch [10]. Competitive Landscape - Price competitiveness remains significant, with MiniMax-M2.5 and GLM-5 priced at $0.3 per million tokens, compared to Claude Opus4.6 at $5, highlighting a 16.7 times difference [10]. - The report suggests that the value of tokens is shifting from internet traffic to essential resources in the AI era, indicating a potential new business model [10]. Future Outlook - The year 2026 is projected to be a pivotal year for the commercialization of large models, with key changes anticipated in business models and market dynamics [10]. - The report emphasizes three main themes: new entry points and commercialization of large models, domestic chip development, and the restructuring of software through agents [10].

Investment Rating - The report maintains a "Recommendation" rating for the computer industry, expecting the industry index to outperform the benchmark index by more than 5% in the next 3-6 months [16]. Core Insights - The report highlights a significant increase in demand for domestic computing power, driven by a surge in Token consumption, which reflects a fundamental shift in user engagement with AI technologies [2][5]. - The Chinese AI computing acceleration chip market is projected to grow from 142.54 billion yuan in 2024 to 1,336.79 billion yuan by 2029, with a compound annual growth rate (CAGR) of 53.7% [5]. - The GPU market is expected to see the fastest growth, with its market share increasing from 69.9% in 2024 to 77.3% in 2029, reaching a market size of 1,033.34 billion yuan [5]. Demand Side Summary - The demand for computing power chips has entered a high-load normalization phase, with Token consumption increasing exponentially due to a transformation in AI usage from simple Q&A tools to productivity tools capable of handling complex tasks [5]. - The report cites NVIDIA's CEO, who emphasized that without computing power, Token generation and revenue growth are not feasible [5]. Supply Side Summary - The report discusses the constraints on overseas supply due to policy restrictions and capacity bottlenecks, which limit supply elasticity and create a window for domestic alternatives [5]. - Domestic chip manufacturers are enhancing their capabilities, with significant advancements in performance and commercialization, as evidenced by the breakthroughs in FP8 computing power standards [5]. - The report notes that domestic GPU manufacturers are achieving substantial revenue growth, with companies like Cambrian Technology reporting a turnaround to profitability for the first time [5]. Investment Recommendations - The report suggests focusing on the following areas for investment: 1. Chip design: Cambrian Technology, Haiguang Information, Muxi Co., Moer Technology, and Tianneng Zhixin 2. Chip foundry: SMIC and Huahong Semiconductor 3. Servers and supporting services: Inspur Information and Huafeng Technology [5].

Market Overview - The A-share market continues to experience slight fluctuations, with the Shanghai Composite Index changing between red and green over 10 times, while the CSI 1000 index has risen for the fourth consecutive day, reaching a nearly 9-year high since April 2017 [1][10] - The market turnover remains stable, with sectors such as rare metals, artificial intelligence, supercritical power generation, and hotel catering showing strong performance, while sectors like glass fiber, communication equipment, consumer electronics, and aviation equipment are underperforming [1][10] Supercritical Power Generation - The supercritical power generation sector has been gaining momentum, with the sector index hitting historical highs for four consecutive days. Companies like Jin Modern and Yunnan Energy have seen rapid stock price increases, with Yunnan Energy achieving a seventh consecutive day of gains [2][12] - Recent developments include the successful operation of the world's first commercial supercritical carbon dioxide power generation unit in Guizhou, and the initiation of construction for a 2×660 MW ultra-supercritical coal-fired power project, which is expected to complete an investment of 2.349 billion yuan by 2026 and generate approximately 6 billion kWh annually [4][12] - The technology is projected to support lower energy consumption and carbon emissions, with installations planned primarily in coal-rich regions like Xinjiang, Shanxi, and Inner Mongolia, potentially transforming coastal provinces with higher environmental standards [5][13] Artificial Intelligence Sector - The artificial intelligence sector is witnessing a strong rally, with significant inflows of capital. The AI sector has attracted over 11.7 billion yuan in net inflows, with companies like Huasheng Tiancai and Yuntian Lifa receiving substantial investments [6][15] - Recent reports indicate that in the second week of February, the usage of Chinese AI models surpassed that of American models for the first time, with a total of 41.2 trillion tokens compared to 29.4 trillion tokens from the U.S. [8][16] - Four out of the top five AI models by usage on the OpenRouter platform are from Chinese companies, contributing to 85.7% of the total usage among the top models [9][16]

Core Insights - In February, China's AI model API call volume surged, surpassing that of the United States for the first time, with 41.2 trillion tokens compared to the U.S.'s 29.4 trillion tokens during the week of February 9-15 [1][7] - The following week, China's model call volume increased to 51.6 trillion tokens, marking a 127% growth over three weeks, while U.S. model calls dropped to 27 trillion tokens [1][7] - Four out of the top five models in global API call volume are from Chinese manufacturers, indicating a collective rise rather than reliance on a single product [1][10] Token Call Volume Growth - The global token call volume for major models has seen explosive growth, increasing from 12.4 trillion tokens in early March 2025 to 139.5 trillion tokens by mid-February 2026, a tenfold increase in less than a year [6] - In early 2026, U.S. models showed signs of fatigue in growth, while Chinese models began to accelerate rapidly, with a notable increase to 22.7 trillion tokens in the first week of February [6][7] Competitive Landscape - The top five models on the OpenRouter platform during the week of February 16-22 were dominated by Chinese models, contributing 85.7% of the total call volume [10] - MiniMax's M2.5 model, launched on February 13, quickly became the top model, contributing 14.4 trillion tokens to the total call volume of 32.1 trillion tokens during the week of February 9-15 [10] Cost Advantages - Chinese models are significantly cheaper than their U.S. counterparts, with input costs at $0.3 per million tokens compared to $5 for U.S. models, and output costs at $1.1 and $2.55 respectively versus $25 for U.S. models [16][17] - The cost advantage is attributed to innovative algorithm architectures, such as the Mixture-of-Experts (MoE) model, which reduces computational costs and increases efficiency [18] Market Dynamics - The demand for Chinese AI models is expected to grow exponentially, with a projected compound annual growth rate of 330% in token consumption from 2025 to 2030 [19] - The shift in user behavior is transforming AI from a simple Q&A tool to a productivity tool capable of handling complex tasks, leading to increased token consumption [21][22] Future Trends - The pricing model for AI services is evolving towards a hybrid model that combines "fuel" (tokens) and "results," with a trend towards customized and flexible pricing structures [22][23] - The rise of AI agents is expected to complicate pricing further, necessitating a multi-dimensional pricing system that accounts for various factors such as task complexity and resource consumption [23]

Core Viewpoint - The AI computing sector remains active, with the domestic AI industry chain-focused ETF (589520) experiencing a price increase of 2.4% during the day, marking a second consecutive day of gains [8]. Group 1: ETF Performance - The ETF's price rose by 2.3%, reaching a peak of 0.705, with a trading volume of 56.44 million and a turnover rate of 5.62% [1][8]. - The ETF is a financing and margin trading target, providing an efficient tool for investing in the domestic computing power sector [11][4]. Group 2: Stock Performance - Notable stocks include Yuntian Lifei, which hit the daily limit with a 20% increase, and Sikan Technology, which rose over 10% [12]. - Other stocks such as Youkede and Yunchong Technology saw gains exceeding 8%, while companies like Xinyuan and Yaxin Security also experienced increases [12]. Group 3: AI Model Usage - OpenRouter reported that from February 9 to 15, Chinese models achieved a calling volume of 41.2 trillion tokens, surpassing the 29.4 trillion tokens of U.S. models for the first time [10]. - Four of the top five models by usage are from Chinese manufacturers, contributing 85.7% of the total calling volume [10]. Group 4: Market Sentiment - Analysts believe that the increase in usage of domestic AI models and expectations for monetization will accelerate data calling volume growth and model performance improvement, benefiting the domestic computing power industry chain [10][3]. - International capital is increasingly optimistic about leading Chinese AI models, driven by the commercialization cycle, unexpected progress in international expansion, and favorable valuation comparisons with U.S. tech stocks [3][10].

Market Overview - On February 26, 2026, the A-share market saw all three major indices close higher, with the Shanghai Composite Index at 3888.60 points, up 0.34%, and the Shenzhen Component Index at 12984.08 points, up 0.85% [1] - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling 1.44% to 26381.02 points, and the Hang Seng Technology Index down 2.87% to 5109.33 points [1] - In the U.S. stock market, the S&P 500 Index decreased by 0.54% to 6908.86 points, while the Dow Jones Industrial Average saw a slight increase of 0.03% to 49499.2 points [1] Banking Sector - The People's Bank of China announced support for domestic banks to conduct RMB cross-border interbank financing under lawful, compliant, and risk-controlled principles [2] - Domestic banks are required to manage these financing activities centrally and establish robust risk management and internal control mechanisms [2] - A warning mechanism must be established for when the net RMB financing balance approaches 80% of the upper limit [2] AI Industry - For the first time, China's AI model API usage surpassed that of the U.S., with 4.12 trillion tokens called in the week of February 9-15, compared to 2.94 trillion tokens in the U.S. [3] - The following week, China's usage further increased to 5.16 trillion tokens, marking a 127% rise over three weeks, while U.S. usage fell to 2.7 trillion tokens [3] - Four out of the top five AI models by usage are from Chinese companies, contributing 85.7% of the total calls [3] Baidu Financial Performance - Baidu Group reported fourth-quarter revenue of 32.74 billion RMB, a 5% increase from the previous quarter, slightly above market expectations [3] - AI business revenue accounted for 43% of Baidu's general business revenue, with smart cloud infrastructure revenue at 5.8 billion RMB and AI high-performance computing subscription revenue up 143% year-over-year [3] - The adjusted EBITDA for the fourth quarter was 4.7 billion RMB, with an EBITDA margin of 14% [3]

Core Insights - In February, China's AI model API call volume surged, surpassing that of the United States for the first time, with 41.2 trillion tokens compared to the U.S.'s 29.4 trillion tokens during the week of February 9-15 [1][7] - The following week, China's model call volume increased to 51.6 trillion tokens, marking a 127% growth over three weeks, while the U.S. model's call volume dropped to 27 trillion tokens [1][7] - Four out of the top five models in global API call volume are from Chinese manufacturers, indicating a collective rise rather than reliance on a single product [1][10] Token Call Volume Growth - The global token call volume for major models has seen explosive growth, increasing from 12.4 trillion tokens in early March 2025 to 139.5 trillion tokens by mid-February 2026, a tenfold increase in less than a year [6] - In early 2026, U.S. models showed signs of fatigue in growth, while Chinese models began to accelerate rapidly, with a call volume of 22.7 trillion tokens in the first week of February [6][7] Leading Models and Their Performance - The top five models by call volume during the week of February 16-22 included four from China: MiniMax's M2.5, Kimi K2.5, GLM-5, and DeepSeek's V3.2, contributing 85.7% of the total call volume [10] - MiniMax's M2.5 model achieved 14.4 trillion tokens in its first week, while Kimi K2.5's innovative architecture significantly boosted its call volume and revenue [10][13] Cost Competitiveness - Chinese models are significantly cheaper than their U.S. counterparts, with input costs at $0.3 per million tokens compared to $5 for U.S. models, and output costs at $1.1 and $2.55 versus $25 for U.S. models [15][16] - The cost advantage is attributed to innovative algorithm architectures, such as the Mixture-of-Experts (MoE) model, which reduces computational costs and increases efficiency [18] Market Dynamics and Future Trends - The demand for AI tokens is expected to grow exponentially, with a projected compound annual growth rate of 330% from 2025 to 2030, leading to a 370-fold increase in consumption [19] - The shift in AI usage from simple Q&A to complex task execution is driving this growth, as users increasingly rely on AI for productivity [20] - Future pricing models for AI services are anticipated to become highly customized and flexible, reflecting the complexity of tasks and consumption patterns [22]