AI TRENDS | Galaxy Securities Highlights Structural Divergence in AI Sector

On May 6, Galaxy Securities reported that the artificial intelligence sector in April continued to show significant structural divergence within the industry. According to Jin10, hardware remains strong while software and applications are weaker. In the short term, the impact of geopolitical conflicts and fluctuating oil prices has diminished. However, the earnings season has led to a substantial outperformance in upstream computing infrastructure, particularly domestic computing power, exceeding expectations. Investors are increasingly favoring sectors and companies with strong performance certainty and high expectations. The structural divergence is expected to persist in the short term, with a recommendation to focus on the upstream computing infrastructure, especially the domestic computing power industry chain.