Huatai Securities: Technology may still be the main theme, but the apparent crowding is already at a high level.

Huatai Securities research report stated that in the past two weeks, Chinese AI assets have led the global market, benefiting long-term from global supply chain exposure and China's long-term layout of sovereign AI. In the short term, they are mainly driven by the iteration of large domestic models and the procurement of domestic chips by leading internet companies. At the industrial level, attention is focused on three major marginal changes: 1. The logical cross-validation of domestic models and domestic computational power chains: Zhishu GLM-5.2 continues to catch up with overseas leading large models in long-term tasks, code, and intelligent scenarios. According to The Information, DeepSeek V4.1 is expected to be released this month; ByteDance has increased its procurement of domestic chips, with Huawei Ascend and Cambricon already being its GPU suppliers; 2. The reinforcement of the "sovereign AI" narrative, the U.S. Department of Commerce has used export control powers for the first time to restrict non-U.S. residents from using Claude Fable 5/ Mythos 5; 3. The diffusion logic of AI inflation, the trend of rising prices of MLCC has spread to high-end inductors, with price increases in ABF substrates, copper foil/ electronic cloth/ CBF films, and some funds rotating towards tungsten, molybdenum, and other computational metals. In terms of allocation, against the background of global resonance of the AI industry cycle, the strengthening of computational power demand, and domestic substitution, technology may still be the main theme; however, the apparent congestion is already high. Coupled with the market's discussion on Tokenmaxxing heating up, it is suggested to closely monitor industry trends, while moderately controlling positions, being cautious about chasing highs, and focusing on domestic large models, optical modules, storage/CCL, MLCC, and MPO among other segments.