Huaxi Securities: China's AI "Spring Festival" Boom, Vertical Productivity and Agent Deployment Accelerate

Western Securities Research Report states that recently, China’s AI large models have experienced a “Spring Festival” breakout, with technological trends shifting from general-purpose chat tools to vertical productivity tools and real agent deployment. Key areas include industrial-grade video generation (such as multimodal storytelling and audio-visual synchronization in Seedance 2.0), engineering-level programming (like cross-file reconstruction and system engineering capabilities in Zhipu GLM-5), and consumer office scenarios. Currently, amid liquidity concerns and changing overseas OpenAI capital expenditure expectations, the market is increasingly focusing on cost-effectiveness ratios in AI development. We expect the market to remain volatile with a cautious, neutral allocation. The AI development stage is still in a critical acceleration phase of Scale up and Scale out. As supply systems for related computing chips become more robust, application demand for tokens continues to accelerate, and underlying infrastructure for computing power is still expanding. We remain optimistic about in-house GPU upgrades for Scale up, opportunities for domestic manufacturers in power supplies and liquid cooling industries, increased demand for domestic computing power components such as chips, switches, and servers, and the market opportunities driven by accelerated capital expenditure of CSP providers in computing power leasing and AIDC-related markets.

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【Huaxi Communications】China’s AI “Spring Festival” Breakout Accelerates Vertical Productivity and Agent Deployment

1. Multiple models debut during the “Spring Festival,” driving explosive demand for video, programming, and other applications in open-source model fields

Recently, China’s AI large models have experienced a “Spring Festival” breakout, with technological trends shifting from general chat tools to vertical productivity tools and real agent deployment. Focus areas include industrial-grade video generation (such as multimodal storytelling and audio-visual synchronization in Seedance 2.0), engineering-level programming (like cross-file reconstruction and system engineering in Zhipu GLM-5), and consumer office scenarios.

ByteDance leads with content creation and traffic ecosystems, Alibaba leverages service capabilities and a comprehensive ecosystem to break through, Zhipu AI establishes a leading position in engineering-specific professional scenarios, while MiniMax and DeepSeek fill gaps with extreme efficiency, open-source strategies, and cost advantages.

The competitive focus is no longer limited to parameter scale but shifts toward efficiency, cost control, and scene adaptation. Meanwhile, through massive “red envelope battles,” AI has achieved its first true mass penetration, marking an irreversible shift from technological exploration to large-scale practical applications in daily life.

Accelerated application deployment is expected in core areas like video and programming, while domestic demand for computing power may boost hardware equipment and computing leasing markets, benefiting edge computing distribution. Beneficiary stocks include computing power leasing and third-party data center providers: Guanghuan Xinwang, DataPort, Runze Technology, Xiechuang Data, Dongyangguang, David Technology, etc., as well as edge computing vendors: Wangsu Technology.

2. Current Outlook

At this stage, amid recent liquidity concerns and changing overseas OpenAI capital expenditure expectations, the market’s focus on cost-effectiveness ratios in AI development is evident. We expect the market to remain volatile with a cautious, neutral stance.

We believe the current AI development phase is still in a critical acceleration period of Scale up and Scale out. As supply chains for relevant chips become more mature, application demand for tokens continues to grow rapidly, and underlying infrastructure for computing power remains in expansion. We remain confident in in-house GPU upgrades for Scale up, opportunities for domestic manufacturers in power supplies and liquid cooling industries, increased demand for domestic chips, switches, servers, and the market opportunities arising from accelerated capital expenditure by CSPs in computing power leasing and AIDC.

Additionally, in commercial aerospace, we particularly recommend component and chip suppliers related to low Earth orbit satellites.

Risk Warning: Technology and application progress may fall short of expectations; policy support may be less than anticipated; systemic risks.