According to a research report from Huatai Securities, in the era of AI, the landscape of software competition is evolving from a focus on standardized products to a model that places equal importance on 'product capabilities, industry expertise, and in-depth delivery'. Software vendors worldwide are rapidly transitioning to the FDE model. Notably, domestic software providers are gaining prominence, thanks to their competitive edge in industry knowledge and strong customer loyalty. Interim reports reveal a diminished narrative surrounding closed-source models, a resurgence in the valuation of U.S. software stocks, and an upward trend in global software valuation expectations. Simultaneously, leading domestic AI application companies are anticipated to experience accelerated revenue growth and enhanced profitability in the first half of 2026, resulting in a simultaneous boost in both valuation and performance. Huatai Securities posits that the FDE model will further amplify the strengths of domestic software providers, propelling their AI businesses from pilot validation stages to formal contract conversions. The report recommends keeping a close eye on the full-year performance of domestic software providers.