AI Application Accelerates Across Sectors: From Defense to Advertising, Which Stocks to Watch?

Recently, the prevailing sentiment in the AI sector has clearly shifted from "tech deep-dive" to "practical implementation." Before, it was all about who had the superior large model or the stronger computing power. Now, the focus is on who can actually deploy AI in real-world scenarios and close the commercial loop. This is a significant turning point for investors.

My take is this: The true dividends from AI won't necessarily come from companies with the most advanced models or the strongest chips, but rather from the players who can utilize AI and make money from it. This is precisely the direction we should be eyeing for stock selection in this next phase.

First, let's talk about the defense sector. $OpenAI(OpenAI.NA) recently secured a $200 million order from the U.S. Department of Defense, and $Oracle(ORCL.US) has also launched military AI solutions, including encrypted cloud and intelligence analysis. All this indicates that AI has moved from the laboratory to the real battlefield.

Speaking of military AI, one cannot overlook $Palantir Tech(PLTR.US) . While competition is increasing, I don't believe its moat has been weakened. Platform companies like Oracle are more likely to become its partners, jointly pushing AI towards practical deployment. Palantir currently has clear orders and policy support, classifying it as a company one can hold for the mid-term. While short-term volatility exists, for us, pullbacks represent buying opportunities.

Next, let's discuss the application layer – this is where the truly "interesting" changes are happening.

$Reddit(RDDT.US) recently rolled out an AI-powered ad targeting tool, capable of analyzing user behavior to help advertisers place ads more precisely. This is a crucial step for its monetization transformation, and the market responded positively, with the stock jumping 6% on the news.

$Meta Platforms(META.US) is also moving fast. Right after WhatsApp opened up ad placements, it launched an AI video ad tool that can generate ad videos from just a few images. This kind of low-barrier AI product is especially well-suited for small and medium-sized businesses; it's high-volume and has a massive potential market.

I personally pay close attention to the "AI + Advertising" trend for a simple reason: advertising budgets are finite. Whoever implements AI first and delivers better results will attract those budgets. This could be a new growth engine for social platforms.

As for the evergreen question of "Can $NVIDIA(NVDA.US) still be bought?", my view hasn't changed: it remains the leader in the AI space, but it has risen too much in the short term, so I don't advise chasing highs. Even though some funds have cleared out their Nvidia positions, overall capital flow data still shows net inflows. For a company of this caliber, my strategy is to "wait for it to drop": dare to buy on big dips, and profits will follow.

Overall, AI has now entered its second phase, shifting from a focus on technology to practical application and monetization. When picking companies now, we must adapt our approach accordingly. We can no longer just look at who has superior tech; we need to focus more on who can truly translate that technology into products, services, and revenue.

Finally, a quick note on operational suggestions:

• Short-term opportunities: Companies like Reddit and Meta, which have already launched AI tools, are suitable for monitoring news flow and agile trading.
• Mid-term allocation: Palantir, Oracle, and other military AI companies with long-term order support can be gradually positioned on dips.
• Leader strategy: Nvidia remains the emotional anchor; avoid chasing highs and wait for pullbacks.

To summarize: AI isn't a fading trend; it has entered the practical combat phase. In the future, whoever can truly apply AI and make money from it will go further. Our investment approach should be the same – don't just look at technology, focus more on practical application and monetization.