Guangfa Securities: Google and Microsoft successively held developer conferences in May, AI sector risk appetite is expected to increase

According to the Zhitong Finance and Economics APP, GF Securities released a research report stating that investors are still concerned about whether AI can achieve a phenomenal application. However, the developer conferences of Google and Microsoft in May are expected to boost investors' confidence in AI applications. In April, due to the impact of earnings season, the entire technology sector has a lower risk appetite. In May, with the end of the earnings season and the consecutive developer conferences of two overseas tech giants Google and Microsoft, the risk appetite for the entire AI sector is expected to increase. Continuing to be optimistic about the market performance of domestic leading optoelectronic module companies against the backdrop of increased capital expenditure by overseas AI giants, recommending Zhongjixuchuang (300308.SZ), Tianfutongxin (300394.SZ), and Xinyisheng (300502.SZ).

Events: According to the Google official website, the annual Google I/O conference will be held in California, USA on May 14th; according to the Microsoft official website, the Microsoft Build developer conference will also be held in Seattle, USA on May 21st.

The previous Google I/O conference had remarkable AI achievements, and this year's conference is expected to exceed expectations on the application side. According to blog.google, at the previous conference, Google themed the event as "Making AI helpful for everyone," and released the upgraded large-scale language model PaLM2, focusing on improving multilingual translation, mathematics, programming languages, reasoning, and natural language generation capabilities. Additionally, Google announced a series of AI-related products at the conference, including the enterprise-oriented AI platform Vertex AI, upgraded Bard AI chatbots, Google Search, and more.

According to Google's official introduction, this I/O conference will kick off the "Gemini era." Gemini is an AI model announced by Google in December 2023, and this conference may see a stronger upgrade for Gemini. Furthermore, it is expected that this conference will showcase more applications, such as next-generation AI phones, XR-related products, and Android 15 integrated with more AI features.

Microsoft's Build 2023 conference will introduce a full suite of AI products, and the AI PC and feature upgrades at this conference are worth looking forward to. According to Tencent News, Microsoft introduced five AI-related products at the Build 2023 conference, including the integration of Copilot at the Windows system level, seamless integration of Bing and Chat GPT, third-party plugins for Microsoft 365 Copilot applications, and new Azure and Microsoft Fabric with AI enhancements. The launch of Windows Copilot makes Windows the world's first PC system integrated with AI services. This conference is expected to showcase more plans and achievements in AI PC, Copilot, Windows on Arm, and other AI feature upgrades, fully demonstrating Microsoft's commitment and capability in AI investment and innovation Positive outlook on the catalytic market of domestic leading optical module companies due to AI application innovation at the end. Guotai Junan Securities stated that since the emergence of OpenAI's Sora in February, it has boosted domestic investors' expectations for overseas AI applications. However, in the past two months, the popularity of Sora has declined, and investors' concerns about the prospects of AI applications are rising.

Risk Warning: NVIDIA's Blackwell series chip shipment progress is below expectations; AI model and application development are below expectations; upstream optical module supply chain expansion progress is below expectations; trade friction risks; geopolitical risks