Global markets experienced broad gains in July, driven primarily by the better-than-expected performance of major AI companies and abundant market liquidity. A review of the earnings reports of key AI companies in the US reveals the following key insights: 1) Leading firms are committed to maintaining high levels of investment in AI infrastructure going forward; 2) AI has effectively fueled revenue growth in sectors such as advertising and search; 3) Companies have managed to sustain stable profit margins through workforce reductions and enhanced operational efficiency. As a result, we anticipate that, driven by substantial capital expenditures, global AI application revenues will continue to accelerate. 

We expect Chinese AI application companies to exhibit a similar trend, albeit with a slight delay. China benefits from a wide array of AI application scenarios and has a lower intensity of infrastructure investment (Capex) per unit, along with higher efficiency. This positions Chinese companies to maintain strong profit margins while sustaining revenue growth.