Google's AI Transformation: What It Means for Android Users

GUOSEN SECURITIES: Google AI hardware suite released for Android

Google has recently unveiled an AI hardware suite that integrates Gemini into various hardware devices, such as smartphones, smartwatches, and TWS earphones. This suite supports cross-application scheduling and seamless integration with all Google applications. A research report by Guosen Securities highlights the positive outlook for the electronics industry, following a period of destocking over the past two years. With the increasing demand for AI computing power, the industry is poised for a sustained upward cycle.

Industry Outlook and Stock Recommendations

The electronics industry has shown a significant acceleration in prosperity, indicating a strong recovery from the recent downturn. It is advisable to focus on stocks with solid fundamentals and industry chain targets that are likely to benefit from new product releases. Companies such as Sunlord Electronics, Luxshare Precision, Dongmu Shares, and others are recommended for investment.

Google's AI Transformation for Android

Google's AI hardware suite release marks a significant step towards comprehensive AI integration for Android devices. By incorporating Gemini into the construction of the Android system, Google aims to enhance the AI capabilities of smartphones and other devices. This strategy is similar to Apple's approach, focusing on rebuilding the operating system around AI to drive innovation and consumer adoption.

In the US smartphone market, Android holds a substantial market share, and Google's AI upgrade is expected to further enhance Android's competitiveness in terms of AI innovation. Industry chain targets such as Goertek, Sunlord Electronics, Elec-Tech International, and Furong Technology are worth keeping an eye on.

Apple's AR Developments

Apple continues to invest in the augmented reality (AR) industry, with multiple products in experimental development. The Vision team at Apple is working on AR glasses and a "budget-friendly Vision Pro" slated for release next year, demonstrating the company's commitment to AR technology.

Performance of Power Device Companies

As we enter the earnings disclosure period, it is crucial to monitor the performance of power device companies. Medium and low-voltage power devices are showing signs of stabilization and improvement, driven by demand repair and market exploration. Companies like Jiejie Microelectronics have experienced significant revenue and profit growth, indicating a positive trend in the sector.

Key Investment Portfolio

Consumer Electronics: Luxshare Precision, Pengding Holdings, Lens Technology, Crystal Optoelectronics, and more.

Semiconductor: Hengxuan Technology, Changdian Technology, Weir shares, and others.

Equipment and Materials: Zhongwei Company, Dinglong Shares, Xinqi Micro Assembly, and more.

Passive Components: Shunluo Electronics, Fenghua High-Tech, Jiemei Technology, and others.

Risk Warning

It is important to be cautious of risks such as downstream demand fluctuations, unmet industry development expectations, and intensified competition within the market.