On May 12, Morgan Stanley released a report indicating that China's artificial intelligence (AI) is entering a new phase, shifting from chasing technological capabilities to capturing value. The focus is moving from training to reasoning, from technology to application, and from potential to actual profitability. The bank believes that at this stage, enablers and foundational models remain key investment themes, while the broad application of AI also presents investment opportunities for beneficiaries. In the bank's risk-return analysis of AI application players, companies such as Beisen Holdings, Meitu, Stone Technology, Midea Group, and Ecovacs Robotics stand out. MiniMax and Zhipu are key players among foundational model suppliers in China's AI sector, while Alibaba is positioned as the best full-stack AI platform among the companies covered by the bank. Morgan Stanley strongly recommends CATL, Yingliu Co., and Siyuan Electric as key targets in the power sector. The bank continues to be optimistic about Cambrian, Tenstorrent, Northern Huachuang, Zhongwei Company, ACM Research, SMIC, and Xinxing Electronics, as these AI enablers will benefit from the long-term trend of localization in China's semiconductor industry. (Dongxin News Agency)