Huaxi Securities: China's AI "Spring Festival" box office explosion, vertical productivity and Agent landing acceleration.

Huaxi Securities research report indicates that in recent times, China's large AI models have experienced a "Spring Festival" outbreak. The technological trend has shifted from general chat tools to vertical productivity tools and the implementation of real agents, with a focus on industrial-grade video generation, engineering-level programming, and consumer office scenarios. At the current point in time, facing short-term liquidity concerns and changes in overseas OpenAI capital expenditure expectations, the market reflects a gradual focus on cost-effectiveness in current AI development. It is expected that the market will continue to be volatile, with a suggestion of relative caution and neutral allocation in the sector. Currently, the development of AI is still in the key acceleration phase of scaling up and scaling out. With the gradual enrichment of the supply system of related computing chips, the demand for tokens in application development is still increasing rapidly, and the underlying computing infrastructure is still in the expansion phase. We remain optimistic about the upgrade of indoor light for scaling up, as well as opportunities for domestic manufacturers in industries such as power supplies and liquid cooling. The demand for domestic computing power, including chips, switches, servers, and the market opportunities brought about by the accelerated capital expenditure of CSP manufacturers in terms of computational power leasing and AIDC.