CITIC Securities' research report highlights that, commencing in 2026, the valuation of the internet sector has plummeted to historic lows. This downturn can be attributed to several factors: shifts in the narrative surrounding AI, concerns over the short-term profitability of internet companies due to escalating investments, and geopolitical events that have dampened market risk appetite and tightened liquidity conditions. As we look forward to 2026, amidst the prevailing uncertainty surrounding liquidity disruptions, it is advisable for investors to focus on companies that boast low valuations, robust earnings certainty, strong cash flows, and favorable shareholder returns. Concurrently, the AI industry is experiencing an accelerated trend, warranting attention to the transformative potential of AI narratives propelled by advancements in model capabilities, Agent paradigm innovations, and the realization of earnings.