According to the CITIC Securities Research Report, the current “AI devours software” narrative is gradually being falsified: revenue from leading manufacturers and on-hand orders are still growing steadily, and application software fundamentals have not experienced the structural stalling that the market previously feared; at the same time, model makers are promoting enterprise-level implementation by embedding existing workflows such as CRM, ERP, ITSM, and HCM. Traditional software vendor data, industry knowledge, and customer service capabilities still constitute core barriers. In the short term, the increase in model homogenization attributes and the increase in the share of AI revenue for software companies are expected to continue to improve the valuation of the US stock software sector. In the medium term, whether the sector can reverse from valuation repair still depends on whether AI products can drive a recovery in the overall revenue growth rate of software companies. The next 1-2 quarters may be an important observation window.

According to the CITIC Securities Research Report, the current “AI devours software” narrative is gradually being falsified: revenue from leading manufacturers and on-hand orders are still growing steadily, and application software fundamentals have not experienced the structural stalling that the market previously feared; at the same time, model makers are promoting enterprise-level implementation by embedding existing workflows such as CRM, ERP, ITSM, and HCM. Traditional software vendor data, industry knowledge, and customer service capabilities still constitute core barriers. In the short term, the increase in model homogenization attributes and the increase in the share of AI revenue for software companies are expected to continue to improve the valuation of the US stock software sector. In the medium term, whether the sector can reverse from valuation repair still depends on whether AI products can drive a recovery in the overall revenue growth rate of software companies. The next 1-2 quarters may be an important observation window.