Profit releases from the semiannual reporting season are now fueling a new wave of momentum, with artificial intelligence applications stepping in as the next growth driver. This shift is becoming increasingly visible as companies begin to showcase tangible results from their AI investments, moving beyond the initial large model development phase.

The first key theme centers on the transformative leap in large language models, which has laid a robust foundation for downstream innovations. Following this, the second theme highlights the practical commercialization of AI applications, where real-world use cases are beginning to translate into revenue streams and operational efficiencies. Finally, the third theme underscores the attractive valuation proposition currently on offer, suggesting that market pricing does not yet fully reflect the potential earnings uplift from these technologies.

For investors seeking direct exposure, attention is turning to the Hong Kong internet sector, with the Huabao Hong Kong Internet ETF (513770) serving as a key vehicle. This fund focuses on leading companies within the space, aligning with a strategy of prioritizing industry frontrunners. Notably, a bullish MACD golden cross signal has emerged on several of these stocks, indicating strengthening upward price momentum and potentially promising market performance ahead.

As always, it is crucial to acknowledge that market conditions carry inherent risks, and any investment decision should be approached with careful consideration and due diligence.