What bullish aspects are worth paying attention to in the surging concept of AI applications in the Hong Kong stock market? Why are institutions bullish on overseas benchmarking companies?
Financial Association News on November 20 (Editor Ye Feng): Today, the individual stocks related to the concept of AI applications in the Hong Kong stock market collectively surged.
As of the time of publication, fourth paradigm (06682.HK) surged nearly 16%, meitu (01357.HK) rose over 11%, kingsoft (03888.HK) rose about 10%, innovation pioneer (02121.HK) rose over 8%, sensetime-W (00020.HK), and baidu (09888.HK) followed the uptrend.
It is worth mentioning that haitong int'l pointed out in a recent report that the attention to the AI sector has continued to increase this week. Overseas companies in different tracks such as Applovin, Shopify, and others have benefited from the business boom brought by AI, garnering high market attention.
On the news front, as of the local time on November 20th, the US stock AI e-commerce advertising concept stock AppLovin has accumulated a staggering 706% increase so far this year, opening up the imagination space of the short-term market for AI applications.
Orient's computer team also pointed out in a report on November 18 that since the introduction of ChatGPT, various applications based on large models have been continuously launched, seeking opportunities for user growth and business closed loops. Recently, there has been an accelerating trend in AI applications.
According to statistics, through AI product traffic analysis, both web visits and app visits have maintained good month-on-month growth. Among them, microsoft Copilot's month-on-month growth rate reached as high as 87.6%, and the monthly web application visits have all exceeded one hundred million.
In addition, based on the information disclosed in the recent US third-quarter reports, including Palantir, Applovin, Duolingo, and other AI application companies have shown high revenue growth. Large models empowering products have brought good sales performance, indicating that the performance surge brought by AI applications is not an isolated case.
In terms of Hong Kong stocks, kingsoft's third-quarter revenue increased by 42% year-on-year, with significant contributions from AI-enabled office software business; fourth paradigm's core business, the Prophet AI platform business, grew significantly in the first three quarters, with revenue reaching 2.171 billion yuan, a year-on-year increase of 50.2%.
Overall, with the continuous growth of global AI product users, the commercialization of industry vertical applications is accelerating, which may catalyze short-term trends in related concept sectors.
haitong int'l also believes that in the future, Wensheng video technology is expected to further reduce the threshold for user creation and reshape the video content creation ecosystem. Currently, overseas AI applications are breaking out one after another, verifying the major trend of AI applications. Meanwhile, the direction of domestic AI applications is still in the landing and application outbreak period. It is recommended to focus on companies with relevant AI products and high-quality IP reserves, and continue to pay attention to cultural globalization, IP derivatives, and other directions.
