Everbright Securities released a research report stating that AI terminal landing acceleration may drive a new replacement cycle. Domestic AI phones may usher in a new era in 2024, with various companies launching AI big language models and AI phone series products. The application scenarios currently covered by AI big models highly overlap with those of PCs, which is why AI PCs are called the "best carriers for big models." Currently, the PC replacement cycle has arrived. After a long delay in procurement, demand in the business field is expected to grow in 2024. Apple, Qualcomm, Microsoft, and other giants have successively released artificial intelligence systems and new chips, which are expected to lead the development of the AI terminal industry. Investment recommendations: pay attention to (1) whole machines/ODM/OEM: Luxshare Precision Industry, Shenzhen Transsion Holdings Co., Ltd., Goertek Inc., Huaying Technology, etc.; (2) battery/power supply: Zhuhai Crown Yutron Electronic Technology Co., Ltd., Sunwoda Electronic Co., Ltd., etc.; (3) structural and functional components: Lingyi Itech, Shenzhen Everwin Precision Technology Co., Ltd., Suzhou Chunqiu Electronic Technology Co., Ltd., etc.; (4) heat dissipation: Lingyi Itech, Jones Tech plc, Shenzhen FRD Science & Technology Co., Ltd., etc.; (5) PCB: Avary Holding, Suzhou Dongshan Precision Manufacturing Co., Ltd., etc.; (6) optics: Zhejiang Crystal-Optech Co., Ltd., Zhejiang Lante Optics Co., Ltd., etc.