Incident: On May 21, local time, the American technology company Microsoft held its annual Build developer conference.
Microsoft and Qualcomm jointly launched the Snapdragon Dev Kit for Windows (SnapdragonDev Kit for Windows) at the conference. This development kit is designed to provide hardware support for Windows developers to speed up application building for Copilot+ PCs.
At the Microsoft conference, AI end-side applications put the finishing touch and became the protagonist. This year's Microsoft Build Developers Conference can be called one of the biggest AI events in 2024. Not only did senior Microsoft and Qualcomm executives attend, but finally, OpenAI CEO Sam Altman personally arrived. At the conference, Microsoft presented more than 50 innovative updates to the world, with AI end-side applications accounting for most of the presentations. Microsoft detailed AI application products such as AI-assisted programming, AI translation, and AI employee collaboration (Team Copilot). Microsoft CEO Satya Nadella (Satya Nadella) presented two major visions of computer technology at the conference: one is to achieve natural human-computer interaction so that computers can better understand humans; the other is to use AI technology to help humans reason, plan, and act more effectively in an age of information explosion. This shows that in the future development of AI, the application and promotion of AI technology may become the main direction of AI development in the future.
Zhongke Chuangda and Qualcomm have maintained close cooperation for a long time, and have a better implementation advantage. China Science and Technology Chuangda and Qualcomm have been working closely together for many years. Qualcomm has provided extensive chip support for AI terminal applications such as smartphones and automobiles. China Science and Technology Chuangda and Qualcomm set up a joint laboratory, jointly developed a QRD reference design, and jointly developed and researched new technologies. Furthermore, they carried out in-depth cooperation and jointly established the joint venture Thundercomm to develop AI terminal applications. Specifically, the company is currently continuously constructing diversified and differentiated solutions for different scenarios and customer needs in smartphone, automotive, and IoT related businesses, and is continuously promoting the accurate implementation of various AI-related applications.
The AI side is being implemented and accelerated, and Zhongke Chuangda has rich experience and card position advantages. With the continuous advancement of AI technology and the continuous expansion of application fields, the AI end-side application market will usher in more intense competition. Under the strategic goal of implementing end-side AI, China Science and Technology Chuangda focuses on the R&D and development of “AI+” application products, and has a full-stack product line covering software development to hardware AI chips. In the future, the company will continue to explore AI end-side application scenario requirements within the framework of the three smart services of smart phones, smart cars, and smart IoT. In the future, with the launch of more AI end-side products and further development of the industry market, partners such as China Science and Technology Chuangda and Qualcomm are expected to explore more “gold mines” in the field of terminal-side intelligence.
Investment advice: Positively view the “AI” strategy and end-side AI application layout of China Science and Technology Chuangda. The company is in a period of rapid growth in AI applications. With its excellent R&D team and technical capabilities, it is expected to show core competitiveness in various end-side AI scenarios such as mobile phones and automobiles. With the continuous accumulation and accumulation of AI technology, close cooperation with chip manufacturers, and continuous innovation and optimization of software and hardware applications, the barriers to the company's AI end-side products and services will gradually increase, and the value will be highlighted. We expect the net profit of China Science and Technology Chuangda to return to the mother in 2024-2026 will be 4.82, 6.31, and 884 million yuan respectively, corresponding to price-earnings ratios of 49X, 37X, and 27X, maintaining the “recommended” rating.
Risk warning: AI technology falls short of expectations; policy implementation falls short of expectations; industry competition intensifies.