[Huatai Securities: AI majors are increasing their focus on embodied brains, and the data mining and hardware sectors are expected to be the first to benefit] On October 28, Huatai Securities’ research report stated that in the field of robotics, major AI manufacturers are focusing on the deployment of embodied brains, and the task planning and generalization capabilities of general models are rapidly improving. Model capabilities are still the core bottleneck of the industry, but further breakthroughs increasingly rely on real machine data, and implementation needs to solve delays and costs. Data collection and perception, body operation control, and high-precision transmission are expected to be the first to benefit. In the field of smart driving, the Ministry of Industry and Information Technology plans to stipulate that autonomous driving system sign lights are only available for L3 and above vehicles. The boundaries of L3 responsibilities will gradually be clarified. The pace of L3 entry from 2027 to 2028 will become a key variable in the smart driving competition among car companies. In terms of investment, we focus on industry chain companies with customer base and mass production capabilities.