In the A-share market, the popularity of artificial intelligence (AI) themes continues to surge, with Doubao concept stocks emerging as the latest darlings, succeeding the likes of Kimi and Zhipu.

Recently, the Douyin Doubao AI concept has burgeoned, witnessing a substantial rise in a cohort of ByteDance-related stocks, including Zhongke Lanxun, Espressif Systems, Shenguang Group, Tianlong Group, and PalmReader Technology.

01. Multifaceted Factors Driving the Surge of 'Doubao'

As an intelligent AI product under ByteDance, Doubao, akin to Baidu's Wenxin Yiyan, is an AI tool built upon the Skylark model. It offers functionalities such as chatbots, writing assistants, and English learning aids, adept at answering various queries and engaging in conversations to facilitate information acquisition. Supported on web, iOS, and Android platforms, Doubao's versatility and ease of use have swiftly garnered user favor.

Recently, the user base and market performance of the Doubao APP have been particularly noteworthy. According to Quantum Bit data, as of the end of November 2024, the cumulative user base of the Doubao APP surpassed 160 million, with a stable daily average of 800,000 new user downloads, positioning it as the second-ranked AI APP globally and first in China. In November, the daily active users (DAU) of the Doubao APP approached 9 million, marking a growth rate exceeding 15%, significantly outpacing Kimi's 3 million DAU.

Doubao's success underscores ByteDance's technical prowess and market positioning. Leveraging its strengths in algorithmic recommendations and big data analysis, ByteDance possesses a profound understanding of user needs, continually refining product features and enhancing the user experience. Doubao's chatbot and writing assistant functionalities were developed with a deep comprehension of user demands, catering to their needs for information retrieval and content creation.

Moreover, ByteDance's substantial traffic volume has robustly supported Doubao's rapid growth. Promotions on platforms like Douyin and Toutiao have enabled Doubao to swiftly reach a vast audience, fostering rapid user base expansion. With continuous product iterations and optimizations, Doubao's user penetration is anticipated to further escalate.

Additionally, on December 10, ByteDance's video generation model, PixelDance, officially commenced internal testing on the Doubao desktop version, with select users already accessing the experience portal. The internal testing page indicates that users can generate ten videos daily at no cost.

The introduction of PixelDance will not only bolster the efficiency of individual creators but also propel the prosperity of the entire content ecosystem. Amidst the prevalence of short videos and live streaming content, efficiently producing high-quality videos poses a challenge for numerous content creators. PixelDance presents a novel solution to this quandary.

Moving forward, with the continuous enhancement of PixelDance, ByteDance intends to introduce additional AI functionalities on its platform to further nurture users' creative endeavors. This will not only elevate individual creators' efficiency but also foster the flourishing of the entire content ecosystem.

02. Overview of Doubao-Related Concept Stocks

The Doubao APP industry chain sector, a nascent blue ocean for stock market investments, harbors expansive development prospects and abundant investment opportunities. As AI technology advances and application scenarios broaden, the Doubao APP industry chain sector exhibits immense growth potential.

Securities firms generally harbor optimism towards Doubao, believing its versatile applications encompass AI video generation, AI companionship, multi-agent interaction, complex task processing, and daily life scenarios, rendering it ubiquitous.

Open Source Securities contends that competition for large AI video models is intensifying, with multimodal capabilities continually evolving, thereby unlocking commercialization avenues. Huatai Securities posits that ByteDance's new video model will find application in content creation-related fields, with companies possessing core directors, creative talents, and IP resources poised for future benefits.

Great Wall Securities asserts that competition among general large models has abated, with vendors increasingly focusing on the application side. In 2025, with the pervasive adoption of AI agents, AI is expected to seamlessly integrate into people's work and life, spawning more popular AI applications. Coupled with the continuous refinement of systems like the 'Interim Measures for the Administration of Generative AI Services,' the commercialization of China's model and application layers is anticipated to further accelerate, embarking on a performance delivery era.