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

West China 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 Seedance 2.0’s multimodal storytelling and audio-visual synchronization), engineering-level programming (such as Zhipu GLM-5’s cross-file reconstruction and system engineering capabilities), and consumer office scenarios. Currently, amid liquidity concerns and changing overseas OpenAI capital expenditure expectations, the market is increasingly focusing on cost-effectiveness ratios. We expect the market to remain volatile, with a cautious, neutral allocation strategy. The AI development stage is still in a critical acceleration period of Scale up and Scale out. As the supply system for related computing chips gradually enriches, application development’s demand for tokens continues to accelerate, and underlying infrastructure for computing power is still expanding. We remain optimistic about in-house upgrades for Scale up, opportunities for domestic manufacturers in power supplies, liquid cooling, and other industries, as well as increasing demand for domestic computing power components like chips, switches, and servers. Additionally, the accelerated capital expenditure by CSP providers presents opportunities in computing power leasing and the AIDC market.

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【West China Communications】China’s AI “Spring Festival” Breakout, Vertical Productivity and Agent Deployment Accelerate

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

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 Seedance 2.0’s multimodal storytelling and audio-visual synchronization), engineering-level programming (such as Zhipu GLM-5’s cross-file reconstruction and system engineering capabilities), 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 compensate through extreme efficiency, open-source strategies, and cost advantages.

The competition 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 adoption, marking an irreversible shift from technological exploration to large-scale application in daily life.

In core areas like video and programming, application deployment is expected to accelerate. Domestic demand for computing power may boost hardware and leasing markets, benefiting edge computing distribution. Relevant beneficiaries include computing power leasing and third-party data center providers: Guanghuan Xinwang, DataPort, Runze Technology, Xiechuang Data, Dongyangguang, David Technology, and edge computing providers like 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 is evident. We expect continued market volatility and recommend a cautious, neutral allocation.

We believe the current AI development phase remains in a critical acceleration period of Scale up and Scale out. As the supply system for related chips becomes more robust, application development’s demand for tokens continues to grow rapidly, and underlying infrastructure for computing power is still expanding. We remain confident in in-house upgrades for Scale up, with opportunities for domestic manufacturers in power supplies, liquid cooling, and other industries. Demand for domestic computing power components such as chips, switches, and servers is increasing, along with accelerated capital expenditure by CSPs, creating opportunities in computing power leasing and the AIDC market.

Additionally, in commercial space, 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.

(Source: First Financial)