A recent research report from China Merchants Securities underscores that in the short-term outlook for August, investors should concentrate on five key areas exhibiting potential for marginal improvement: AI applications, AI hardware, non-bank financials, defense and military, and innovative drugs. Shifting to the medium to long-term perspective, the report advocates focusing on three pivotal trends, utilizing the economic cycle as the core axis and supply-demand dynamics as the benchmark. Firstly, it highlights the advancement of societal intelligence within the new technology cycle, encompassing large model iterations, the enhancement of computing power infrastructure and the AI ecosystem, the implementation of AI business models, and their empowering impact on consumer electronics, robotics, and other sectors. Secondly, it underscores the domestic substitution cycle, emphasizing the strengthening of domestic large models, AI applications, and computing power, alongside the capability of the integrated circuit industry chain to achieve autonomy and controllability. Lastly, it emphasizes the "dual carbon" cycle, which involves cost reduction and efficiency improvements across the entire carbon neutrality industry chain, encompassing sectors such as photovoltaics, wind power, energy storage, hydrogen energy, and nuclear power. Furthermore, amidst the trend towards electrification and intelligence, the report predicts a continued rise in the penetration rate of electric and intelligent vehicles.