China AI Trading: Uncertainty over "Who is the Ultimate Winner," Betting on the Beneficiaries of the "AI Application War"
JP Morgan defines 2026 as the "activation year" for consumer-grade AI. Due to the application layer's moat not being solidified yet, the report suggests that investors avoid betting on single application winners and instead focus on the "second-order beneficiaries" such as the surge in token consumption, the marketing battle for user acquisition bonuses, and AI's compression of content production cycles, mentioning Alibaba, Tencent, Baidu, NetEase, and Kuaishou among others