According to the CITIC Securities Research Report, in 2025, the Internet sector emerged from a volatile upward trend in an environment of repeated external disturbances, and the upward movement was mainly AI-driven value revaluation and liquidity improvements. Looking ahead to 2026, we believe that AI is still the core catalyst for upward sector valuations. The core focus: 1) narrative strengthening brought about by model iteration, application implementation, and performance implementation; 2) valuation benchmarking brought about by model companies after listing is expected to further drive the revaluation of the AI business of Internet companies. However, for companies with low short-term AI correlation, performance visibility and valuation cost performance will be the core elements of stock selection. It is recommended to focus on vertical leaders with a relatively stable competitive pattern and strong performance resilience, a booming circuit driven by supply innovation, and absolute profit targets under undervaluation.

According to the CITIC Securities Research Report, in 2025, the Internet sector emerged from a volatile upward trend in an environment of repeated external disturbances, and the upward movement was mainly AI-driven value revaluation and liquidity improvements. Looking ahead to 2026, we believe that AI is still the core catalyst for upward sector valuations. The core focus: 1) narrative strengthening brought about by model iteration, application implementation, and performance implementation; 2) valuation benchmarking brought about by model companies after listing is expected to further drive the revaluation of the AI business of Internet companies. However, for companies with low short-term AI correlation, performance visibility and valuation cost performance will be the core elements of stock selection. It is recommended to focus on vertical leaders with a relatively stable competitive pattern and strong performance resilience, a booming circuit driven by supply innovation, and absolute profit targets under undervaluation.