Overseas AI Application Sector Begins to Rebound; Pay Attention to [AI Application] Sector Investment Opportunities | CITIC Securities Computer

English summary

US software stocks have recently begun to rebound, with AI security and other Infra sectors performing notably. Recently, US software stocks (represented by the iShares US Software ETF IGV) have started to rebound, with software stocks around AI Infra layers such as Snowflake (cloud data platform), Datadog (operations monitoring), and Fortinet (network security) performing well. With large models landing in the enterprise market, they are gradually becoming 'beneficiaries of the key path for AI implementation.' AI may amplify demand for enterprise data, identity, security, governance, and workflow control layers. Software companies with moats and earnings are expected to see a reversal. Currently, big tech is gradually shifting from usage-oriented to outcome-oriented AI. Attention is on real productivity metrics such as single-code submission efficiency and project delivery speedup, rather than total token consumption. We believe factors such as model boundaries, technology diffusion speed, and some software moats reflected in earnings will gradually and systematically reverse this trend. …