The essence of the securities firm morning meeting | Edge-side AI is gradually rising, hardware is being upgraded.

Yesterday, the market opened high and continued to rise throughout the day, with the ChiNext Index leading the gains. The Shanghai Composite Index reclaimed the 3200 point level, while the BSE 50 Index rose by over 10%. The total turnover of the Shanghai and Shenzhen markets was 1.35 trillion RMB, an increase of 384.3 billion RMB from the previous trading day. On the market, hot spots were active one after another, with most individual stocks rising. Over 5300 stocks in the market went up, while less than 40 stocks declined. The number of stocks reaching limit up or rising by over 10% reached over 300, hitting a new high since October 8th of last year. In terms of sectors, AI, Siasun Robot & Automation, Red Book concepts, TikTok concepts, and internet finance were among the top performers, with no sectors experiencing a decline. By the end of yesterday's trading, the Shanghai Composite Index rose by 2.54%, the Shenzhen Component Index rose by 3.77%, and the ChiNext Index rose by 4.71%. At today's securities morning meeting, China Securities Co.,Ltd. pointed out that end-side AI is on the rise and hardware is undergoing upgrades. Galaxy Securities stated that even if additional tariffs are implemented, the impact on the Renminbi will be weaker than in 2018. CITIC SEC expressed interest in investment opportunities in domestic large models, domestic computing power processes, intelligent driving, and specific intelligent companies. China Securities Co.,Ltd.: End-side AI is on the rise, and hardware is undergoing upgrades China Securities Co.,Ltd. pointed out that with the continuous growth and iteration of large model capabilities, the differences between models are shrinking. Giants such as Meta, ByteDance, Xiaomi, have begun to focus on end-side AI, competing for AI Agent market entry. Potential explosive end-side AI products are expected to appear by 2024, with the cost curve of AI glasses significantly decreasing, leading to a potential outbreak year in 2025. In addition to smartphones, PCs, glasses, and headphones, end-side AI has a huge potential base, benefiting sectors such as home appliances, Siasun Robot & Automation, smart vehicles, educational office equipment, and toys. AI embedding will bring about a wide range of hardware upgrades. Key focus areas include computing power, connectivity, storage, and power consumption. Galaxy Securities: Even with additional tariffs, the impact on the Renminbi will be weaker than in 2018 Galaxy Securities stated that looking forward to 2025, based on four factors affecting the Renminbi exchange rate against the dollar, the nominal economic growth rate of China and the US might serve as a positive factor. The monetary policies of China and the US, as well as the supply-demand relationship of foreign exchange, may have a neutral influence, while the central bank's exchange rate policy could be a positive factor. Before the substantial implementation of additional tariffs by the US, the Renminbi may fluctuate within the 7.1-7.3 range. The current environment facing the Renminbi is significantly different from the period of additional tariffs in 2018-2019. Galaxy Securities believes that even if additional tariffs are implemented, the impact on the Renminbi will be weaker than in 2018. Firstly, the US has entered an interest rate cutting cycle, while in 2018, the US was in an interest rate hiking cycle. Secondly, domestically, the expansionary fiscal policy in China may start earlier, with the current low government debt cost compared to economic growth, high efficiency in government debt utilization, and fiscal expansion supporting the exchange rate. CITIC SEC: Focus on investment opportunities in domestic large models, domestic computing power processes, intelligent driving, and specific intelligent companies CITIC SEC pointed out that 2025 is expected to be a big year for technology investment in China. Since the launch of ChatGPT at the end of 2022, AI assets in the US have received unprecedented attention from global investors, with the Nasdaq accumulating nearly a 100% increase. CITIC SEC predicts that after 2025, the attractiveness of Chinese AI assets will gradually show, as leading AI companies continue high investment, rapid iterations, and a bold approach, likely to achieve stable growth in revenue and even profitability, as well as performance-driven alpha investment opportunities. The valuation of leading AI companies in China has a significant comparative advantage over comparable US companies. Once there is a dual pressure on performance and valuation due to a slowdown in CAPEX growth in US tech stocks, the attractiveness of Chinese assets will be further highlighted. CITIC SEC focuses on investment opportunities in domestic large models, domestic computing power processes, intelligent driving, and specific intelligent companies. It is also important to note that Chinese AI computing power is still limited by individuals, and the new US president's inauguration may bring further restrictions, leading to fluctuations in the valuation of Chinese technology assets. This article is a reprint from "Cai Lianshe", GMTEight edited by Li Fo.