The first AI stock will land in Hong Kong stocks, and the trillion market will kick off

Each generation of new technologies has a long way to go from concept to industrial realization.

Every new wave of science and technology, from its inception to its demise, will experience a "period of expectation expansion - a period of bubble disillusionment - a period of recovery growth - a mature period".

Therefore, in the cycle of technology investment, there are two key nodes that can obtain excess returns.

The first key node is the bubble expansion period before the growth period.

Investors can get excess returns for a short time through short-term concepts and hype, and we often refer to the concept hype during this period as the "theme". But as we all know, investment on the left is full of risks and is likely to fall into a period of bubble disillusionment at any time. Moreover, not every technology can enter the real growth period, and there are many examples of falsification in the process of development. The world of technology is changing rapidly, investors have actually been in a huge change, and it is difficult to keep up with the speed of change. If you want to determine the investment logic, you must either wait for the wind to come, or follow the wind.

The second key investment node is the maturity of technology.

At this stage, the market cultivation is basically completed and it is in the stage of rapid volume release. On the one hand, the performance of leading companies often shows an exponential explosion; on the other hand, the market gradually recognizes such opportunities, and the valuation of the industry will enter a phased increase. In this formative period, there are usually "Davis double-click" investment opportunities.

Back to the present, what are the outlets worth paying attention to?

The author and some investment institutions exchanged, we all have a more important consensus, the AI industry after the 2017-2020 three years of expected digestion, data, hardware, algorithms have undergone a huge leap, is entering the inflection point, this year is the first year of AI industrialization.

Through the technological maturity curve released by Gartner this year, it can also be seen that the "wind" of the artificial intelligence track has come.

Another sign that the artificial intelligence industry has matured is that AI companies have transitioned from "outlet" and "hot spots" to industrialization; with it, investors have also looked at the concept to really begin to implement technical strength and commercialization.

From the perspective of specific applications, the artificial intelligence that has truly reached the mature stage is only in the field of natural language processing and computer vision.

Computer vision refers to the use of cameras instead of the human eye to identify, track and measure the target, and further graphics processing to obtain more suitable images for human judgment, or images for machine processing. More than 40% of the world's AI companies are concentrated in this field, which is also the closest AI segment to large-scale application landing and industrialization acceleration.

In the first year of AI, Hong Kong stocks ushered in the first AI stock - on November 22, SenseTime officially passed the listing hearing of the Hong Kong Stock Exchange. Based on the valuation of $13 billion previously raised before going public, this would be the largest AI IPO in the world. The author found that SenseTime has exceeded imagination in the progress of industrial landing.

As of the first half of 2021, SenseTime has a total of more than 2,400 customers, including four major business areas of smart business, smart city, smart car and smart life, empowering more than 250 Fortune 500 companies and listed companies, 119 cities and more than 30 automotive companies, and also empowering more than 450 million mobile phones and more than 200 mobile applications.

Unlike its competitors, SenseTime's strength lies in its focus on leading the industry from the underlying infrastructure of technology – SenseTime is building a new infrastructure unprecedented in the industry – SenseCore AI Appliance, a centralized mass-produced AI model. It is built on the three pillars of large-scale supercomputing, massive data processing and data masking, and a shared platform for developers and production tools, and has the following key advantages:

Train the most advanced super-large artificial intelligence models to achieve their high performance and accuracy; produce scenario-specific artificial intelligence models at low cost to achieve economies of scale for model upgrades; have industry-leading automatic machine learning technology for efficient and easy-to-use; industry-leading privacy computing and data desensitization technology; adaptability across chips, devices and cloud platforms; and provide a comprehensive portfolio of artificial intelligence applications for multiple vertical industries.

SenseCore can achieve larger-scale, lower-cost AI model mass production, thus driving rapid growth in revenue and gross profit indicators. From 2018 to the first half of 2021, SenseTime's cumulative revenue was nearly 10 billion yuan; gross profit margin also continued to grow at a high speed, with gross profit margin reaching 73% in the first half of 2021. This is in line with the industry investment trend we judged – the lead is cashing in quickly.

At present, the prelude to the artificial intelligence trillion market has just begun. Every new wave of technology breeds super-species with huge market capitalizations.

This article originated from Grand Gateway