AI big models are already quietly empowering all walks of life.
At present, at least more than 30 large models have appeared in China, covering Internet giants, AI concept listed companies, server leading enterprises, scientific research institutes and primary market startups, and the parameter scale of some large models has approached or even exceeded the scale of ChatGPT. (From Minsheng Securities Research Report)
So, what changes will these big AI models bring?
The application value of artificial intelligence is becoming more and more prominent
IDC forecasts that the spending scale of the Chinese intelligence market will increase to US$14.75 billion in 2023, accounting for about one-tenth of the world's total scale, and the application value of artificial intelligence is becoming more prominent.
In the market, artificial intelligence application enterprises are better at landing in the fields of vision, speech, and natural language processing, giving priority to reducing production and maintenance costs and improving work efficiency to monetize, thereby accelerating the realization of disruptive changes in industrial production.
(Source: International Data Corporation)
Reflected in the capital market, the artificial intelligence industry index (931071) has unknowingly risen by 34.41% in the past 6 months (WIND, as of 2023.5.31), which has become the most beautiful landscape in the market.
(Data source: WIND, statistical interval 2022.11.29-2023.5.31)
Investment background: Multiple benefits give investors confidence
Looking at the past, when the technology cycle began, the economic cycle often started.
(Source: Founder Securities)
For example, the consumer electronics market in 2007 can be traced back to the release of Jobs' Apple smartphone;
After 2015, Internet companies mushroomed like mushrooms, and it was inseparable from the Internet transformation from 2013 to 2015.
In the current market, NVIDIA has made a blockbuster technological breakthrough and has a bright first-quarter financial report.
In addition, domestic AI computing power chips ushered in heavy policy benefits. Artificial intelligence is getting more and more support, and there will be more benefits in the future.
The superposition of several factors has indeed enhanced everyone's confidence in artificial intelligence.
Seizing investment opportunities in AI: Focus on three angles
However, the artificial intelligence sector has a long industrial chain and a wide range of enterprise coverage, how do you see investment opportunities?
You can focus on these three angles:
Computing power upstream
Combined with large models, the demand for AI computing power will be considerable.
With the combination of more and more applications and large models, the demand for computing power on the inference side is also expected to show explosive growth momentum.
(Source: International Data Corporation)
Midstream big model stocks
Due to the development and lightweight of large models, many companies on the application side use their accumulated industry data to provide new functions and products using industry small models in their original business fields.
Basic semiconductors
Semiconductor as a technology industry reinforced concrete, finally is inseparable, behind the continuous growth of global semiconductor sales, is its increasingly huge demand, investment direction can pay attention to the domestic semiconductor industry chain weak links of independent controllable investment opportunities: semiconductor equipment and parts, materials, etc.
(Source: Wind, Guosheng Securities Research Institute)
From three perspectives, large model companies have accelerated the release of existing large model application landing capabilities, and upstream computing power and basic semiconductors will usher in investment opportunities due to demand.
(Source: WIND)
According to WIND statistics, as of 2023/6/9, taking the "Information Technology Index" as an example, its current PE-TTM is 53.45 times, with a fraction of 43.51% in the past 3 years, 39.61% in the past 5 years, and 25.73% in the past 10 years.
After more than 2 years of continuous adjustment, even though it has ushered in a wave of gains so far this year, the overall valuation quantile of the TMT track is still below the historical median.
Reason for recommendation:
Since the beginning of the year, AI concepts have maintained a strong growth momentum, and as more and more big models emerge, the valuations of many tech stocks have also risen with the increasing intelligence of AI.
How can ordinary investors participate in investing in AI?
Huaan Media Internet (Class A: 001071/Class C: 016099)
Explore and invest in the most potential companies in the Internet field, and strive to find leaders in the rising channel of e-commerce, software, online media and other segments, which deserve investors' long-term attention.
Topic: Which sector of the artificial intelligence industry are you optimistic about? Why?
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