A research report by CITIC Securities states that AI is advancing at a rapid pace, with large language models undergoing continuous iterations and upgrades, driving exceptionally strong demand for computing power. For instance, the significant improvement in programming capabilities of Zhipu’s new model has triggered a surge in computing power demand, while Seedance’s video capabilities have performed exceptionally well, attracting attention from industry leaders. The report argues that the commercialization path for large language models is clear, shifting from a phase of “low-cost/free market expansion” to one of “paying for high quality,” which is driving robust demand for computing power. During the holiday period, U.S. AI computing power and optical communications stocks performed exceptionally well overall. Jensen Huang announced that he will unveil a chip “unlike anything the world has ever seen” at the GTC conference in March. We remain bullish on the AI industry chain, including large language models and the AI computing power sector.