The analyst rating is based on the significant improvements demonstrated by ByteDance's Seedance 2.0 over its previous version, including enhancements in generation quality, complex actions, storyboarding, consistency, instruction adherence, and audio-visual synchronization. The report highlights the model's rapid popularity among creators and a broader audience, as well as its advancements in multimodal, inference, and programming scenarios. CICC expects Seedance 2.0 to continue gaining popularity, which will bolster demand for video model inference, particularly benefiting ByteDance and the Volcengine-related IDC industry chain. The recommendation focuses on AI infrastructure and IDC-related companies, leading to an "Outperform" rating for GDS Holdings and VNET Group, with specified target prices.
