Amid the increasing buzz surrounding AI glasses, the stock market has responded positively, particularly on February 7th. Many companies involved in this burgeoning sector saw substantial gains in stock prices, highlighting investor optimism. For instance, Yutong Optical surged over 16%, while companies like Rapoo Technology, Meige Intelligent, and Yingtong Communications also enjoyed increases nearing 10%. Other firms, including Yongxin Optical and Huacan Optoelectronics, recorded gains exceeding 5%. This excitement in the market is driven by a broader trend of technological innovation and competition in smart eyewear, as various brands launch their advanced products.

Over the past month, a flurry of new AI glasses have been unveiled by companies such as Thunderbird Innovation and Rokid, with many firms branching into the realm of intelligent eyewear. Notably, esports brand Thunder Technology and display manufacturer Kang Kwan Technology have also entered this space, indicating a cross-industry interest in AI-enhanced devices. Major players like Baidu, Samsung, and Xiaomi are expected to introduce their first smart glasses by 2025, marking a significant moment in this technological race.

On February 6th, speculation arose regarding Xiaomi's entry into the AI glasses market following the activation of their official WeChat account. However, on February 7th, the General Manager of Public Relations at Xiaomi, Wang Hua, swiftly refuted these claims, clarifying that the account was not newly launched and was, in fact, established several years ago. This incident highlights the intense scrutiny and excitement surrounding the potential for Xiaomi's involvement in what is being dubbed the "hundred-glass battle."

Analysts at Huatai Securities suggest that the surge in interest surrounding AI glasses, initially sparked by Meta's announcements, could generate new growth opportunities within the consumer electronics supply chain. This burgeoning market is seen as a promising platform for the deployment of large-scale AI models like Deepseek, offering not only a hard technological base but also extensive application scenarios.

However, despite the optimism, some observers caution that many companies in the industry may currently have only marginal engagement with AI glasses, as their primary revenue streams do not substantially rely on this technology yet. On February 7th, while Yutong Optical, Rapoo Technology, and Meige Intelligent's stocks hit their limits, their actual revenue from AI glasses remains minimal.

For instance, Yutong Optical specializes in the design and production of optical lenses used in various fields such as security monitoring and automotive applications. In its 2024 performance forecast, the company anticipates a net profit attributable to shareholders of between 160 million to 200 million yuan, representing impressive growth year-on-year. Despite this insight into strong financial performance, Yutong has explicitly stated that they do not currently produce lenses designed for AI glasses, instead providing molded glass for downstream clients working on AI eyewear.

Similarly, Rapoo Technology has launched its Z1 STYLE smart audio glasses, while Meige Intelligent has indicated its commitment to consumer IoT devices like AR glasses and action cameras as core to its portfolio. The company is also developing AI-enabled solutions for an AR glasses brand, highlighting its active role in the ongoing evolution of smart eyewear despite current revenue levels being relatively low.

Yet, in response to the hype surrounding AI glasses, companies like Aishi Optoelectronics have had to clarify their positions, stating that they do not have products targeted for the AI glasses market. Li Din Technology also noted that they consider the AR and AI glasses sector to be a minor segment of their business, contributing less than 1% to overall revenue and, therefore, not posing a significant impact on their performance.

Despite these reservations, analysts like Shan Hui Wei from Huaxi Securities remain optimistic about the long-term prospects for AI glasses. They foresee the potential for AI glasses to become the next billion-unit consumer electronics terminal, underpinned by diverse product forms and continued cost reductions. Moreover, it’s noted that in 2023, the global sunglasses market saw about 850 million units sold, with traditional glasses accounting for another 580 million. Together, these statistics suggest that AI glasses could tap into a significant consumer base, potentially rivaling smartphone sales in the near future.

For AI glasses to achieve substantial success, several engineering challenges must be addressed. Xu Chi, the CEO of XREAL, asserts that the future of AI glasses hinges predominantly on advancements in large-scale AI models, accounting for approximately 70% of their efficacy, while the remaining 30% pertains to hardware development. He emphasizes that the demands placed on AI glasses are far more stringent compared to those for smartphones, particularly regarding power consumption, comfort over prolonged wear, and overall performance for interaction and display.

This sentiment is echoed by others, who recognize that the increasing interest in AI glasses underscores a promising opportunity for innovation. However, the current available technology and user experience still fall short of anticipated standards. The central vision for AI glasses should extend beyond mere “fashionable tech gadgets” to becoming genuinely intelligent assistants for users, capable of functioning like a reliable companion.

To transform from trendy devices into indispensable smart assistants, extensive research and development are necessary. In the short term, breakthroughs in AI model development—particularly in areas like multi-modal interaction, personalization, and memory capabilities—are crucial. In the longer term, enhancements in chip technology, display efficacy, and user-experience elements must be prioritized, particularly as AI glasses could serve as ideal platforms for AI applications.

Moreover, there remains a need for customized chips that cater specifically to the AI glasses market. Presently, many AI glasses leverage Qualcomm's AR1 or the W517 platform from Unisoc, but these platforms were initially tailored for AR applications rather than AI functionalities, indicating significant room for improvement. Various components manufacturers are in the process of developing dedicated chips, with expectations for advancements by late 2025.

Partnerships, such as Meta's collaboration with Ray-Ban and TCL Thunderbird's ties to Alibaba for enhanced user interaction through AI language models, exemplify the structural connections essential for the sector's growth. However, the key obstacle continues to be the limited availability of engaging applications that foster user retention and attraction. In Stephen Feng's analysis, the AI glasses platform, as a new category of consumer electronics, doesn't face the same coordination challenges of established brands in the smartphone ecosystem, which could accelerate the realization of AI applications in real-world contexts. Therefore, as AI glasses rise in prominence, they enable practical scenarios for large AI models, such as DeepSeek, to thrive.

Achieving success for AI glasses demands surpassing the user experiences currently found in mobile apps. As optimal carriers for AI technology, smart glasses hold advantages over traditional smartphones and personal computers. Xu Chi envisions a bright future within two to three years, with AI glasses emerging as valuable new terminals—provided the industry crosses the necessary thresholds of technological and experiential barriers to meet user satisfaction and expectations. Only by doing so will AI glasses earn their rightful place in the marketplace, marking a true success for this innovative product category.