Guangfa Securities: After 26 years, artificial intelligence (AI) is still a relatively rare high prosperity.

Guangfa Securities research report stated that, in terms of growth rate itself, broad demand remains flat, and AI is still relatively scarce in the 26th year of high prosperity: The progress of AI in the 26th year has driven up global EPS forecasts. The domestic development stage has also changed, and the concentration of transactions during the period when the economy was driven by traditional industries cannot be compared with the threshold of the technological revolution period. Currently, broad demand remains relatively flat, and high prosperity is still scarce in terms of profit structure in the 26th year. Therefore, it is natural for the proportion of market value and transaction volume of these high-growth companies to increase. Looking ahead, there are two possible paths to break the scarcity of high prosperity: 1) a broader economic recovery; 2) AI bubble bursts, and the U.S. experiences a recession. The probability of these two scenarios playing out is low, therefore, the scarcity of high prosperity is expected to continue, and the concentration of transactions in A-shares may remain at a high level.