Morning meeting of brokerage firms | Focus on the overseas and domestic computing power industry

Yesterday the market fluctuated and fell all day, with significant differentiation in the major indexes. The micro-cap stock index fell by over 7%, with nearly 4800 stocks in the entire market declining, and over 200 stocks hitting the limit down. The turnover of Shanghai and Shenzhen stock markets throughout the day was 1.53 trillion, an increase of 157 billion from the previous trading day. On the market, blue-chip sectors such as large financials were relatively strong, while thematic sectors generally fell. In terms of sectors, the diamond cultivation, shipbuilding, banking, and insurance sectors had the highest increases, while the education, Sora concept, gaming, and media sectors had the highest declines. At the close, the Shanghai Composite Index fell by 0.5%, the Shenzhen Component Index fell by 1.03%, and the ChiNext Index fell by 0.98%. At today's securities morning meeting, China Securities Co., Ltd. stated that they are focusing on the overseas and domestic computing power industry chain. Huatai mentioned that the promotion of gift-giving on WeChat may help to expand new channels for pet brands, with pet enterprises with strong marketing and brand power benefiting more. Guotai Junan proposed that the thematic focus is shifting towards AI, and they are paying attention to breakthroughs in applications and computing power. China Securities Co., Ltd.: Focus on the overseas and domestic computing power industry chain China Securities Co., Ltd. stated that this week, Douyin officially released visual understanding models, 3D generation models, and upgraded universal models pro, music models, and Wen Sheng picture models, among others. As the capabilities of Douyin's large models continue to improve and costs continue to decrease, the usage of the models has increased significantly, with over 40 trillion tokens being used daily in December, an increase of over 33 times since May. OpenAI officially released o3, which has tripled the reasoning performance compared to o1. Both domestic and international giants have maintained rapid upgrades and iterations of large models, rapidly increasing the capabilities of the models. More application scenarios will be unlocked, driving the demand for computing power infrastructure. It is expected that by 2025, various tech giants will maintain high capital expenditure intensity, and it is recommended to focus on the overseas and domestic computing power industry chain, including GPUs, switch chips, optical modules, switches, liquid cooling, power supplies, connectors, etc. Huatai: Promotion of gift-giving on WeChat may help pet brands expand new channels, with pet enterprises with strong marketing and brand power benefiting more Huatai believes that the announcement of the launch of the "gift-giving" feature on WeChat's grayscale testing may create new channels for e-commerce and new gameplay options. Online sales of pet food in China account for a high proportion, and the increasing status of pets in families and the necessity of related products may support them as an important choice for gift-giving on WeChat. Pet food industry leaders with marketing and brand advantages may seize new channels and accelerate the increase in market share. The promotion of gift-giving on WeChat may help pet brands expand new channels, with pet enterprises with strong marketing and brand power benefiting more. High-end brands may benefit from the gift-giving scene and achieve higher growth rates. Guotai Junan: Thematic focus shifting towards AI, and they are paying attention to breakthroughs in applications and computing powerGuotai Junan stated that the constant iteration of AI applications and computing power is constantly generating thematic opportunities, and the callback of the new consumption theme focuses on new policy catalysts. The average daily trading volume of hot themes from December 16th to 20th was 6.16 billion yuan, with a marginal decrease, and the average turnover rate also decreased to 4.21%. The AI application theme first declined and then rose, spreading to the computing power link, while the previously active theme on domestic demand consumption overall declined. With the advantages of data and scenarios, domestic large models are accelerating iteration, especially the breakthrough of visual models boosting interactivity, the continuous verification of quality improvement, efficiency enhancement, and volume expansion of enterprise applications, with demand driving from the bottom up. The explosion of application demand is increasingly highlighting the constraints in the domestic level of computing power, and the spiral iteration of applications and computing power is constantly generating new thematic opportunities. In addition, the incremental demand policy is still worth looking forward to, and the callback of the new consumption theme brings low acquisition opportunities. In the short term, thematic focus should be on the pace of AI application/hardware implementation and new policy catalysts for domestic demand. This article is reprinted from "Cailianshe". Editor: Liu Jiayin.