[CITIC Securities: It is expected that the market of China's Internet sector will revolve around the competition and investment of various Internet companies and the long-term narrative of AI] CITIC Securities research report pointed out that looking forward to the second half of 2025, it is expected that the market of China's Internet sector will revolve around the competition and investment of various Internet companies and the long-term narrative of AI. In the short term, the increased investment in instant retail will lead to a decrease in the performance visibility of the e-commerce and local life sectors. We suggest paying attention to the dynamic interpretation of competition and the potential investment opportunities brought about by the reduction of investment margins. At the same time, platforms such as social networking, online car-hailing, online freight, online travel, and real estate transactions with a more stable competitive landscape have greater growth and performance visibility. In the medium and long term, AI will remain an important industry trend. Chip supply and model iteration are the basis for the acceleration of cloud computing, the development of Agent and the application side, and are also an important catalyst for the revaluation of the Internet sector under the AI narrative.
