In "Major Banks," China International Capital Corporation (CICC): Seedance 2.0 will drive demand for video model inference, urging attention to AI infrastructure and IDC companies

CICC's research report indicates that ByteDance's Seedance 2.0 has significantly improved in terms of generation quality, complex actions and storyboarding, consistency and instruction adherence, as well as audio-visual synchronization compared to previous versions, and has quickly "gone viral" among creators both domestically and internationally; the new generation base model Seed 2.0 has also made comprehensive progress in multi-modal, reasoning, and programming scenarios.

The firm believes that Seedance 2.0 has entered the first tier of global video generation models, even surpassing the previous Sora 2 and Veo 3.1. Seed 2.0, with its high cost-performance ratio and excellent model capabilities, effectively covers real productivity scenarios, achieving comprehensive progress in base models.

In terms of impact, the firm expects Seedance 2.0 to continue "going viral" on a larger scale both domestically and internationally, driving upward demand for video model reasoning, particularly focusing on ByteDance and Volcano Engine's related IDC industry chain. Suggested areas of focus include AI infrastructure and IDC-related companies, including GDS (09698.HK), Century Internet (VNET.US), and Dongyangguang (600673.SH). It is also recommended to pay attention to the multi-modal video-related AI application ecosystem and manufacturers related to ByteDance's industry chain.

The firm gives GDS (GDS.US) and Century Internet a "outperform industry" rating, with target prices of $60 and $15, respectively