Recently, A-share brain-computer interface concept stocks have unexpectedly surged, with notable gains seen in stocks such as Innovent Medical, Fudan Fortune, Nanjing Panda, and Aerospace Changfeng.

What is the 'Human Brain Project'? Why has it suddenly gained popularity? What is the market size? And which companies stand to benefit?

01. Understanding the Human Brain Project

The Human Brain Project, also known as neuroergonomics, is an interdisciplinary field that integrates neuroscience, biology, engineering, and computer science to study the working principles of the human brain and apply these insights to engineering and technology.

If this technology matures, it could potentially solve many neurodegenerative diseases, including Alzheimer's, blindness, paralysis, and brain damage, offering hope for restoring sensory and motor functions. Additionally, it could grant humans superpowers, enabling them to control various devices with their minds alone, thereby achieving a certain level of "mind over matter".

According to Caixin Global, the world's first AI-based dream detection and reconstruction brain-computer interface product, Dreamgear, will be launched on December 28, 2024.

Dreamgear captures brain signals through 10 high-sensitivity brain-computer interface channels, equipped with the world's exclusive Dreamer large model for sleep and dream reconstruction, developed in collaboration with Zhejiang University over many years. This technology transforms dream fragments from blurry and fleeting memories into clear and permanently cherished ones.

Furthermore, the First China Brain-Computer Intelligence Conference (ChinaBMI), co-hosted by the China Association for Artificial Intelligence, the National Key Laboratory of Brain-Computer Intelligence, and other institutions, will take place in Hangzhou from December 20-21, 2024. The conference focuses on the cutting-edge applications and hot topics in brain-computer intelligence technology, providing an academic platform for discussion and exchange among scholars, encouraging interdisciplinary cooperation, and promoting innovation and application in this field.

China places significant emphasis on the development of brain-computer interface technology, with both central and local governments recognizing it as a representative of "future industries" and new-quality productivity. Domestic enterprises are accelerating the commercialization of brain-computer products. In 2023, BrainCo and Tsinghua University School of Medicine jointly completed the first clinical trial of a wireless minimally invasive implanted brain-computer interface. According to the NeuroXess BrainCo public account, BrainCo's flexible brain-computer interface system has completed numerous human clinical trials in collaboration with hospitals and research institutions in 2023.

According to the StrongBrain Tech public account, in 2022, StrongBrain Tech's intelligent bionic hand received FDA certification from the United States, making it the first domestic non-invasive brain-computer interface enterprise to achieve this milestone. As brain-computer interface products enter clinical trials, investment institutions are starting to focus on companies that have made technological breakthroughs and entered clinical trials. RDI analysis predicts that the brain-computer interface market will experience rapid growth from 2024 to 2025.

Various indicators suggest that brain-computer interfaces are rapidly evolving, with science fiction technologies once seen in Hollywood movies gradually becoming a reality. The subsequent industrialization progress is expected to accelerate.

02. Overview of Related Concept Stocks

As one of the most promising industries globally, the Human Brain Project has garnered increasing capital interest in recent years. The concept of the Human Brain Project, encompassing cutting-edge technological fields like artificial intelligence, brain-computer interfaces, and bioinformatics, has surged and gradually become a market hotspot. Related concept stocks include:

Sichuan Finance Securities believes that the brain-computer interface represents new-quality productivity and the future direction of industrial development, with policies encouraging its advancement. Brain-computer interface technology is on the cusp of a qualitative shift towards large-scale application, with domestic and international applications accelerating.

Everbright Securities also contends that, driven by continuous policy and technological advancements, the brain-computer interface industry is poised for significant growth. The application of brain-computer interface technology in the future will extend beyond the medical field, bringing unprecedented changes in areas such as education, industrial production, entertainment, sports, and household management. In terms of market size, the global brain-computer interface market was valued at $1.74 billion in 2022 and is projected to reach $3.3 billion by 2027, with the Chinese market occupying a crucial position.

CITIC Securities points out that the brain-computer interface is one of the most promising directions for new-quality productivity. Domestic and foreign brain-computer enterprises are actively promoting its commercialization in various fields, including healthcare, industry, and entertainment. Domestic policies emphasize the construction of the brain-computer interface industry, fostering coordinated application and transformation. Enterprises are striving to break foreign technological monopolies and establish self-controlled industry-wide solutions. It is recommended to focus on: 1) the rise in prosperity expectations of domestic targets driven by overseas industrial breakthroughs; 2) companies expected to launch consumer-grade brain-computer products; and 3) application-end companies poised to benefit from the implementation of brain-computer products.