Open Source Securities: Domestic AI Continues to Breakthrough, Maintaining a "Positive" Rating for the Computer Industry.

Open Source Securities released a research report stating that domestic AI computing power is on the rise, providing cost-effective chip solutions and combining its own software and hardware ecosystem to reduce reliance on overseas manufacturers and reshape the competitive landscape. In terms of large models, domestic large model capabilities such as Deepseek, Tongyi Qianwen, Byte Bean, and Kimi have rapidly improved and become leaders in global large model competitions. Currently, domestic AI has made significant progress in computing power, large models, and applications, reshaping the global competitive landscape. The firm continues to be optimistic about investment opportunities in domestic AI. Recommended AI application companies include Beijing Kingsoft Office Software, Inc(688111.SH), Intsig Information(688615.SH), Digiwin Co.,Ltd.(300378.SZ), etc.; Recommended AI computing power companies include Hygon Information Technology(688041.SH), Dawning Information Industry(603019.SH), etc. The main points of Open Source Securities are as follows: Baidu releases a new generation of Kunlun chips M100 and M300, domestic AI computing power is rising At the 2025 Baidu World Conference held on November 13, Baidu released a new generation of Kunlun chips. Kunlun chip M100 is optimized for large-scale inference scenarios with a focus on "ultimate cost-effectiveness" and will be launched in early 2026; while Kunlun chip M300 is aimed at the training and inference needs of super-large-scale multimodal models, focusing on "ultimate performance" and will be launched in early 2027. At the same time, Baidu also announced the future plans for Tianchi super nodes: Tianchi 256 super node will be launched in the first half of 2026; Tianchi 512 super node will be launched in the second half of 2026, with support for up to 512 card interconnects, doubling the bandwidth between cards, and a single node capable of completing training for trillion parameter models. In addition, Baidu also unveiled the future roadmap for Kunlun chips: Baidu Tianchi thousand-card super node will be launched in 2028, Kunlun chip N series will be launched in 2029, and Baidu Baihe million-card Kunlun chip single cluster will be lit in 2030. Currently, Kunlun chips have been deployed in tens of thousands of cards, becoming a key foundation for Baidu AI. Baidu Intelligent Cloud has provided high-performance, scalable domestic AI computing power to a large number of enterprises through Kunlun chips and Baihe AI computing platform. Domestic AI computing power represented by Huawei, Hailight, Hanwei, Kunlun chip, and Ali Brother Ali is rising, reshaping the competitive landscape by providing cost-effective chip solutions and combining its own software and hardware ecosystem to reduce reliance on overseas manufacturers. Domestic AI's large model capabilities continue to improve and are gradually being recognized by the world On November 13, Alibaba secretly launched the "Qianwen" project, based on the strongest model Qwen to create a personal AI assistant of the same name - Qianwen App, which competes directly with ChatGPT, joining the top global AI application competition. This means that Alibaba is taking a key step from a technical model to a national-level AI product with "Tongyi". In addition, the "Qianwen" APP will introduce the AIAgent function, making it not just a chat Siasun Robot &Automation, but also capable of performing complex tasks, such as intelligent shopping experiences on platforms like Taobao. Currently, domestic large model capabilities such as Deepseek, Tongyi Qianwen, Byte Bean, Kimi, etc., have rapidly improved and become leaders in global large model competitions. Investment recommendations Currently, domestic AI has made significant progress in computing power, large models, and applications, reshaping the global competitive landscape. The firm continues to be optimistic about investment opportunities in domestic AI. Recommended AI application companies include Beijing Kingsoft Office Software, Inc, Intsig Information, Digiwin Co., Ltd, MARKETINGFORCE, Beijing Seeyon Internet Software Corp., KINGDEE INT'L, Beyondsoft Corporation, Yonyou Network Technology, Hithink RoyalFlush Information Network, Hundsun Technologies Inc., TRS Information Technology, Iflytek Co., Ltd., Focus Technology, Thunder Software Technology, Servyou Software Group, Shanghai Ganglian E-Commerce Holdings, etc., benefiting targets include Fujian Fuxin Software Development Joint Stock, Hand Enterprise Solutions, Wondershare Technology Group, FOURTH PARADIGM, DMALL, BEISEN HOLDING, Newcapec Electronics, Shanghai Newtouch Software, Weaver Network Technology, Ouma Software, Beijing Hanbang Technology Corp., Beijing Haitian Ruisheng Science Technology Ltd., Beijing Shiji Information Technology, Hanwang Technology, Beijing Hanyi Innovation Technology, 360 Security Technology Inc., Richinfo Technology, KUAISHOU-W, MEITU, Shanghai Golden Bridge InfoTech, Beijing Jiaxun Feihong Electrical, etc. Recommended AI computing power companies include Hygon Information Technology, Dawning Information Industry, Beijing Tricolor Technology, Inspur Electronic Information Industry, Digital China Group, Sangfor Technologies Inc., benefiting targets include Hanwei, Changsha Jingjia Microelectronics, Loongson Technology Corporation, Yuntianlefei, etc. Risk warning: Risks of macroeconomic downturn; Policy implementation falling short of expectations, etc.