Source: brokerage China
Author: Qi Wu

On February 8, the A-share ChatGPT concept stock market appeared to be divided, while the Chinese-listed stocks of Hong Kong stocks and US stocks rose frequently because of the concept of ChatGPT. Such as Hong Kong stocks$ZHIHU-W (02390.HK)$It rose nearly 40% in a single day, and its share price reached its highest level since its listing, while US stocks$Youdao (DAO.US)$、$Aurora Mobile (JG.US)$Share prices have also risen sharply.

While domestic ChatGPT concept stocks are widely hyped, relevant companies in the United States are accelerating the integration of ChatGPT, and its commercialization path and application speed exceed market expectations, which is worth reflection.

ChatGPT has raised a hot topic about the application of artificial intelligence. What do domestic companies think of it?

Hong Kong stock Zhihu Inc. rose nearly 40%

On February 8, the A-share ChatGPT concept stocks, which have risen sharply in a row, finally ushered in market differentiation on the eighth trading day after the Spring Festival holiday. Most of the concept stocks fell back, and the share prices of most listed companies in the sector fell, such as$Synthesis Electronic Technology (300479.SZ)$Down 9.78%,$Beyondsoft Corporation (002649.SZ)$Down 6.6%,$FS Development Investment Holdings (300071.SZ)$Down 8.77%,$GuoChuang Software (300520.SZ)$Down 4.75%.

The hype of the ChatGPT of Chinese stocks continues, causing a high degree of market concern.

On the whole, too many days, the market hype on ChatGPT is still in a high state, Zhihu Inc. and other large platforms with data advantages are expected to benefit from it.

At one point, Hong Kong stock Zhihu Inc. soared more than 50% in intraday trading. By the end of the day, it rose 39.57% to HK $32.45, setting a new high since it was listed on the Hong Kong Stock Exchange in April 2022.

Us-listed US-listed US stocks are also extremely excited. Youdao US stocks closed up more than 7 per cent, up more than 20 per cent at one point during the day. On the news, according to the Financial Associated Press, Youdao, Inc's AI technical team has invested in the landing research and development of ChatGPT homologous technology AIGC in the educational scene. At present, the team is trying to explore in the subdivided learning scenarios such as AI oral teachers and Chinese composition correction, and will launch relevant demo products as soon as possible.

Aurora Mobile Limited's US stock closed up nearly 5% overnight after it was announced that it would integrate ChatGPT technology into the core product Aurora Mobile Limited push and launch the "AI creation" tool.

As for A shares, as of the close on February 8, 13 stocks rose for 10 consecutive trading days or more. Such as$Shandong Tongda Island New Materials (300321.SZ)$Rose for 14 days in a row$Beijing Haitian Ruisheng Science Technology Ltd. (688787.SH)$、$Kunshan Kersen Science & Technology (603626.SH)$It has risen for 13 consecutive days. Many concept stocks have performed well and become monster stocks in 2023, such as$Beijing Haitian Ruisheng Science Technology Ltd. (688787.SH)$The cumulative increase is nearly 218%.$Hanwang Technology (002362.SZ)$、$Cloudwalk Group (688327.SH)$、$Shenzhen Sunwin Intelligent (300044.SZ)$The rate of increase doubled during the year.

Wang he, a senior researcher at Boshi Fund, said that after cloud computing, the field of computer software has been looking forward to the emergence of the next technological innovation. The progress of each technological revolution is expected to promote the follow of the industrial trend, and the driving force behind ChatGPT is the progress of AI technology. Considering that the accelerated promotion of pan-AI applications may bring broad market space, ChatGPT concept stocks continue to soar.

ChatGPT's US commercialization exceeded expectations

While domestic ChatGPT concept stocks are widely hyped, American companies are successively introducing products supported by ChatGPT to the market, and the commercialization process of ChatGPT is considered by domestic analysts to be higher than expected.

February 8th$Microsoft (MSFT.US)$Advanced Teams products supported by ChatGPT are launched, which can automatically generate meeting minutes, recommend tasks, or create meeting templates for users. Microsoft Corp has also drawn up a charging plan for the advanced service, which will cost $7 a month in June and then increase to $10 in July.

In addition, Microsoft Corp also plans to apply OpenAI technology to office products such as Word, PowerPoint and Outlook, and add chat robot ChatGPT to Microsoft Corp's search engine Bing.

Changjiang Securities believes that Microsoft Corp announced a series of integration plans one after another, as well as the launch of ChatGPT-based Team products and follow-up charging plans in less than a month, which far exceeded the landing progress of AI commercialization during the last round of deep learning revolution and obviously exceeded market expectations.

In addition to Microsoft Corp, many companies have launched similar ChatGPT projects, such as question and answer platform Quora (similar to domestic Zhihu Inc.) also launched AI chat robot application Poe. The application allows users to ask questions and get answers from a series of AI chatbots. Poe's artificial intelligence technology is mainly supported by the models of OpenAI and Anthropic. Quora recently opened public access to Poe, which currently applies only to iOS users, but Quora says the service will log on to other platforms in a few months.

In ChatGPT-like projects, there are also products that have outstanding advantages in a single field, such as being able to feed back on the latest events, write code, and practice a foreign language.

In terms of commercialization, OpenAI will pilot a paid subscription version of ChatGPT for $20 a month. Prior to this, text generation Jasper (AI content platform) was also priced on the C side.MonthlyAt 82 U.S. dollars, the company achieved revenue of 40 million dollars in its first year.

The large model may start a new round of AI supply cycle. Changjiang Securities believes that the large model is based on the Transform framework, the overall upper limit of data capacity is greatly increased, and the intelligent level is greatly improved under the training of massive data, promoting the gradual evolution of AI from deterministic AI to generative AI. Different from in-depth learning in the past, the big model is more inclined to engineering innovation, based on the existing mature technology integration application rather than the source technology innovation. Once the commercialization realization ability of the large model is verified, its commercialization diffusion speed may far exceed the market expectation.

How do domestic companies deal with it?

Relevant companies in the United States are accelerating the integration of ChatGPT and carrying out commercial development. How do domestic companies view this "technological revolution"? Are you going to hug actively or wait and see?

At present,$Baidu (BIDU.US)$It is one of the few companies in China that have indicated that they will soon launch AIGC-related products. Recently, Baidu, Inc. officially confirmed that he will release a similar ChatGPT project, "Wen Xin a word". The first station may be directly connected to Baidu, Inc. search, providing multi-answer reply, intelligent generation and other functions.

In the domestic speculation of ChatGPT concept stocks, capital speculation of A-share-related companies have recently said that "do not have ChatGPT technology,"ChatGPT has not generated any revenue to the company."

$Zhihu (ZH.US)$It is an original content platform gathered by Internet Q & A community and creators. According to the financial report of the third quarter of 2022, the total internal capacity of Zhihu Inc. community has exceeded 579 million, the total number of Q & A has exceeded 482 million, and the number of monthly active users has reached 97 million. These high-quality content will effectively promote the development of AIGC models.

In addition, from the answers to questions on Bing's Chinese website, it is not difficult to find that many of the answers come from Zhihu Inc.. Based on its advantages in data, similar to Quora's launch of Poe, Zhihu Inc. is thought by the market to fully benefit from the ChatGPT boom.

Some investors told reporters that the rise in Zhihu Inc. 's share price is "lying down to win". Zhihu Inc. is obviously not ready to meet the era of AICG, and he is unable to launch chat robot products as early as Quora. The sharp rise in its share price may be the popularity of the market's expectation of ChatGPT Chinese knowledge, which will invigorate many questions and answers in Zhihu Inc. 's station, and the flow inside the station may continue to rise.

Some organizations believe that there are limitations in the current use of ChatGPT, and there is still room for optimization of the model. Bank of China International pointed out that it would not underestimate the potential subversion of ChatGPT in the long run, but its huge investment cost could not be justified in terms of current user experience, application scenarios, barriers to entry and commercialization potential.

Haitian AAC, which had the highest share price gain this year, said that it noted that AIGC topics such as ChatGPT have recently aroused a lot of attention and discussion in domestic and foreign industries, and the company believes that this is a good thing for the industry to pay more attention to the overall development of AI, but the company has always adhered to a calm, rational and professional attitude towards the substantial impact of various new industrial phenomena, including ChatGPT, on the company's business. The whole AIGC field will maintain a long-term upward development trend in the future, but its development rate and phased effect need to be calmly analyzed to avoid short-term blind overheating. The company always firmly believes in the need to return to the industry and the company's business fundamentals to view the value of all kinds of new phenomena.

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