Key Points
- The AI sector is experiencing a sector-wide explosion, with many companies hitting their daily trading limit and others gaining 10% or more, including Cambrian (Hanwuji 寒武纪) and Cloudwalk Technology (Yuncong Keji 云从科技).
- Three major catalysts are driving this surge: the 7th World Artificial Intelligence Conference (WAIC) in Shanghai, the anticipated August launch of OpenAI’s GPT-5 model, and the new US “AI Action Plan” calling for greater government and defense investment in AI.
- Analysts from Caitong Securities (Caitong Zhengquan 财通证券) and CITIC Securities (Zhongxin Zhengquan 中信证券) predict AI will move to deeper integration and widespread productivity implementation, becoming the primary investment theme for the tech sector through the second half of 2025.
The Artificial Intelligence (AI) sector is on an absolute tear, and it’s not by accident.
On July 25, 2025, the market saw widespread growth across nearly every AI sub-sector, signaling a massive wave of investor confidence.
We’re talking about a perfect storm of a major global conference, a highly anticipated flagship model launch from an industry giant, and significant government buy-in.
Let’s break down exactly what’s happening and why this AI surge is one to watch.
The Market Snapshot: A Widespread AI Rally
This wasn’t just a small bump; it was a sector-wide explosion.
Gains were seen across the board in key AI concepts, including:
- Sora & Multimodal AI
- Zhipu AI (Zhipu Zhi Neng 智谱智能) & Kimi AI
- ChatGPT & AI Corpus
- AI Agents & AI Glasses
- AI Chips
The momentum translated into huge wins for several publicly traded companies.
A handful of firms even hit their daily trading limit, a clear sign of intense investor demand:
- Insai Group (Yinsai Jituan 因赛集团)
- Hanwang Technology (Hanwang Keji 汉王科技)
- Xinhua Media (Xinhua Chuanmei 新华传媒)
- Xianying Technology (Xianying Keji 显盈科技)
Meanwhile, other major players in the space saw their valuations skyrocket with gains topping 10% or more, including Cambrian (Hanwuji 寒武纪), Cloudwalk Technology (Yuncong Keji 云从科技), Maoli Optics (Maolai Guangxue 茂莱光学), and Aojie Technology (Aojie Keji 翱捷科技).
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3 Catalysts Fueling the AI Gold Rush
So, what’s lighting the fire? It boils down to three massive developments hitting all at once.
1. The World Artificial Intelligence Conference (WAIC) Kicks Off
All eyes are on Shanghai.
New line
The 7th World Artificial Intelligence Conference (WAIC) is running from July 26th to July 28th.
This isn’t just another tech conference. It’s a premier global event held at major venues like the Shanghai World Expo Exhibition & Convention Center.
It’s where the industry’s biggest players converge to showcase breakthrough advancements and real-world applications. The hype leading up to WAIC is a huge market mover.
2. The Big One: OpenAI is Set to Launch GPT-5
Get ready for the next leap in AI capability.
Reports from Cai Lian She (财联社) indicate that OpenAI is planning to release its new flagship large language model, GPT-5, in August.
The anticipation is off the charts. Each new GPT model has historically pushed the entire industry forward, and investors are betting that GPT-5 will be another game-changer, unlocking new levels of performance and commercial use cases.
3. Government & Defense Go All-In: The US “AI Action Plan”
When the government gets serious about a technology, the market listens.
The Trump administration recently unveiled its “AI Action Plan.”
The plan explicitly calls for greater investment in AI applications by the US government and its defense departments.
This move signals a strong, national-level commitment to AI development, creating a clear demand pipeline for AI companies in critical, high-budget sectors.
- The 7th World Artificial Intelligence Conference (WAIC) from July 26-28 in Shanghai.
- OpenAI’s anticipated launch of GPT-5 in August.
- The US “AI Action Plan” calling for increased government and defense investment in AI.
What the Analysts are Saying: The Investment Outlook for AI
Top securities firms are weighing in, and their predictions paint a clear picture of what’s next for AI.
Caitong Securities: Deeper Integration and New Business Models are Coming
A report from Caitong Securities (Caitong Zhengquan 财通证券) predicts that over the next 1-2 years, AI’s growth will be all about execution and integration.
Here’s their take on what to expect:
- Standardized Features: Capabilities like AI Agents and multimodal understanding (video, audio, text) will become table stakes, not novelties.
- Smarter, Cheaper Models: Expect expanding context windows and the rise of mixture-of-experts architectures to balance top-tier performance with manageable costs.
- Intense Competition: The battle between open-source and closed-source AI models will heat up, driving down costs and accelerating innovation for everyone.
- Real-World Penetration: AI will move beyond tech circles to deeply transform industries through API services and custom, industry-specific models, sparking entirely new business models.
CITIC Securities: AI is Shifting From Hype to Productivity
CITIC Securities (Zhongxin Zhengquan 中信证券) reinforces this view, stating that AI will remain the primary investment theme for the technology sector through the second half of 2025.
The key insight? We’re at an inflection point.
AI is officially transitioning from a series of “isolated technological advancements” to a tool for widespread productivity implementation.
Chinese tech giants are aggressively exploring new ecosystems and practical applications, pushing the entire market from raw potential to tangible results.
- Standardized Features: AI Agents, multimodal understanding.
- Smarter, Cheaper Models: Expanding context windows, mixture-of-experts architectures.
- Intense Competition: Open-source vs. closed-source battle.
- Real-World Penetration: AI transforming industries through API services and custom models.
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The Bottom Line
What we’re seeing is a market reacting to a convergence of powerful forces: industry showcases, next-gen technology releases, and serious government backing.
The narrative has shifted from “what if” to “what’s next,” with a clear focus on real-world applications and ROI.
For investors, founders, and tech enthusiasts, one thing is clear: the AI sector is not just growing; it’s maturing at an incredible pace.
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