EB Securities: AI Applications Expected to Break through in 2026, Three High-Certainty Main Lines are Recommended for Attention.

EB SECURITIES released a research report stating that the enthusiasm for global technology investment in 2025 remains unabated, but there is a structural differentiation of "strong computing power, weak applications". Next year, there is a great opportunity to find a native AI interaction paradigm in the consumer end, and empower high-value niche scenarios in the business end, which contains significant opportunities. In 2026, it is recommended to focus on three main themes with high certainty: 1) Industry empowerment: Focus on companies with industry know-how and data. 2) Application overseas expansion: Give priority to AI application companies with a high proportion of overseas income. 3) End-side AI: The probability of explosive products increases, benefiting AI hardware brand manufacturers and algorithm vendors. The main views of EB SECURITIES are as follows: The enthusiasm for global technology investment in 2025 remains unabated, but there is a structural differentiation of "strong computing power, weak applications" Global technology giants have significantly increased capital expenditure, with upstream computing chips/hardware directly benefitting, but at the same time, the computer/software sector is facing three pressures: 1) Overall software company performance growth rate is far lower than computing power chain; 2) Compared to hardware, software company valuations are not cheap; 3) Concerns about "large models swallowing software" continue to ferment. As of Q3 2025, domestic public funds have a low allocation of 1.7% to the computer sector. AI applications are expected to break through in 2026 The cost of computing power is expected to continue to decline, paving the way for the prosperity of applications. There are significant opportunities to find native AI interaction paradigms in the consumer end and empower high-value niche scenarios in the business end. Three major opportunities for AI applications in China: deep cultivation in industry, overseas expansion, and reconstruction of the end side The industrial dividend of AI applications in China: China has the world's only complete industrial system, which can provide high-value real-world data/application scenarios/energy supply, and will give rise to diverse Agent forms. The construction of a modern industrial system is proposed to be upgraded to the top in the "15th Five-Year Plan", and it is expected that "artificial intelligence+" will receive intensive policy support during the 15th Five-Year Plan period. Outflow of software product strength: AI application expansion overseas is a combination of the "ultimate efficiency + global pricing" of domestic AI product teams, and the dividend of Chinese engineers is still expanding. Outbound expansion has become the priority strategy for many computer companies, with overseas income growth generally faster than domestic income. There are plenty of opportunities in AI tools, smart devices, cross-border e-commerce, and cross-border payments. Betting on the super entrance of the end side of the AI era: Internet giants and AI startups are actively exploring the form of the end side in the AI era. There are deep integrations with existing consumer electronics products, such as AI phones, AIPC, as well as new types of AI native hardware, such as AI glasses, wearable devices, etc. It is expected that with the continuous maturity of hardware and algorithms, the shipment volume of related products has high growth potential. Risk warning: Geopolitical risk, macroeconomic risk, intensified industry competition risk.