AI Concept Stocks Market Review for the Fourth Week of October: DeFAI Application Layer Continues to Lead, Smart Risk Control and RWA Tracks See Major Institutional Investment

As October 2026 enters its fourth week, the AI concept stock market shows a clear divergence pattern. According to the latest market data, the DeFAI (Decentralized Finance + Artificial Intelligence) application layer continues to lead the market, while smart risk control and RWA (Real World Assets) tracks have seen significant institutional investment. Meanwhile, traditional computing power chains continue to adjust with sustained capital outflows. These changes reflect a restructuring of market investment logic for AI concept stocks, shifting from simply pursuing computing infrastructure to focusing on practical application scenarios and business models.

DeFAI Application Layer: The Core Driving Force Continuously Leading the Market

In this week's market performance, the DeFAI application layer is undoubtedly the biggest highlight. Data shows that DeFAI-related concept stocks have an average increase of over 8%, significantly outperforming the broader market. Among them, sub-sectors focusing on AI-driven lending protocols, decentralized derivatives, and automated market makers have shown particularly outstanding performance.

The DeFAI application layer's ability to continuously lead the market is mainly attributed to the following factors:

1. Practical Application Scenarios: Compared to pure computing power concepts, the DeFAI application layer has formed a complete business cycle, with clear paths from user acquisition to revenue realization. For example, AI-driven lending protocols can optimize interest rate models through smart algorithms, improving capital efficiency while reducing risks.
2. User Growth and Adoption Rate Increase: The latest data shows that the number of monthly active users on DeFAI platforms has increased by more than 15% month-on-month, indicating that market acceptance of AI-enabled DeFi services is rapidly increasing.
3. Clear Profit Models: The DeFAI application layer has explored various sustainable profit models, including transaction fees, data monetization, and algorithm services, providing investors with clear return expectations.
4. Improved Regulatory Environment: As countries gradually clarify regulatory frameworks for DeFi, the regulatory uncertainty faced by DeFAI applications has decreased, enhancing confidence among long-term investors.

Smart Risk Control and RWA Tracks: New Favorites for Institutional Capital

While the DeFAI application layer continues to lead, smart risk control and RWA tracks have also seen significant institutional investment. This week, smart risk control concept stocks had an average increase of 6.5%, while RWA-related concept stocks rose by over 7%, showing strong institutional optimism for these tracks.

The rise of the smart risk control sector is mainly driven by the following factors:

• Increased Risk Control Demand: As market volatility in the crypto space intensifies, demand for smart risk control has significantly increased. AI-driven risk control systems can monitor market risks in real-time, automatically adjust strategies, and effectively reduce systemic risks.
• Obvious Technical Advantages: Compared to traditional risk control methods, AI risk control systems can process more complex data dimensions, identify more hidden risk patterns, and provide more accurate risk assessments.
• Regulatory Compliance Requirements: As global regulation of the crypto market tightens, institutional investors' demand for compliant risk control has increased, driving the development and application of smart risk control technology.

The rise of the RWA track reflects market focus on connecting blockchain with real-world assets:

• Asset Digitization Trend: More traditional assets are migrating to digital formats, and RWA technology provides infrastructure support for this process.
• Accelerated Institutional Entry: More traditional financial institutions are beginning to explore RWA applications, bringing incremental capital to related concept stocks.
• Obvious Valuation Advantages: Compared to pure crypto assets, RWA-related concept stocks typically have more stable cash flows and lower volatility, making them attractive to risk-averse capital.

Computing Power Chain Adjustment: The Logic Behind Sustained Capital Outflows

In stark contrast to the strong performance of the DeFAI application layer and smart risk control and RWA tracks, the computing power chain continued to adjust this week, with an average decline of over 3%, showing a trend of sustained capital outflows.

The main reasons for the pressure on the computing power chain include:

1. Overvalued: After sustained previous gains, valuations of computing power-related concept stocks have reached historical highs, lacking further upward momentum.
2. Intensified Competition: As more companies enter the computing power sector, industry competition has intensified, squeezing profit margins.
3. Demand Below Expectations: Although overall AI computing power demand is growing, short-term actual demand growth has not met market expectations, leading to concerns about overcapacity.
4. Policy Uncertainty: Uncertainty in AI computing power regulatory policies in various countries has increased investment risks, prompting capital to shift to more certain application layers.

Changes in Market Sentiment: The Rational Migration from "Computing Power Faith" to "DeFAI Implementation"

The significant change in market sentiment is a key feature of the current AI concept stock market. From the "computing power faith" at the beginning of the year to the current "DeFAI implementation," the market's focus on AI concept stocks has clearly shifted.

This shift is mainly reflected in the following aspects:

1. Focus Shifts from Technology to Application: Investors are increasingly focusing on practical application scenarios and business value of AI technology, rather than purely technological innovation.
2. Shift from Concept Hype to Value Investment: As the market matures, investors are paying more attention to companies' actual profitability and cash flow conditions, rather than concept hype.
3. Decreased Risk Preference: Overall market risk preference has decreased, with investors more inclined to choose high-certainty, low-volatility targets such as smart risk control and RWA-related concept stocks.
4. Enhanced Long-term Investment Philosophy: Investors are paying more attention to companies' long-term development prospects rather than short-term stock price fluctuations, which is beneficial for tracks with long-term development potential like DeFAI.

Industry Expert Views: Judgments on Future Trends of AI Concept Stocks

Several industry experts have expressed different views on the future trends of AI concept stocks, but generally believe the market will show structural differentiation.

Zhang Ming, a partner at a well-known AI investment firm, stated: "AI concept stocks have entered a differentiation phase. Companies with real technical barriers and commercial application scenarios will receive more capital favor, while pure concept hype will gradually be abandoned by the market."

Li Hua, director of the DeFAI Research Institute, believes: "The DeFAI application layer is on the eve of an explosion. With the deep integration of AI technology and DeFi, it will enter a golden development period in the next three years. Investors should focus on companies that have already achieved commercial closed loops."

Wang Qiang, a smart risk control expert, pointed out: "As crypto market regulation tightens, smart risk control will become standard for DeFi, and related concept stocks have long-term investment value. However, investors should also be alert to technology iteration risks and choose companies that continuously invest in R&D."

Investment Strategy Recommendations: How to Seize AI Concept Stock Investment Opportunities

Based on current market characteristics, we provide the following AI concept stock investment strategy recommendations for investors:

1. Focus on Application Layer Value: Investors should focus on DeFAI application layer companies, especially those that have achieved commercial closed loops and have stable income sources.
2. Seize Smart Risk Control Opportunities: Smart risk control is the infrastructure for DeFi development and has long-term investment value. Investors can focus on companies with technical advantages and market position.
3. Pay Attention to RWA Track Potential: RWA connects traditional finance and the crypto world, with huge development potential. Investors can focus on companies that have formed actual business models.
4. Avoid Pure Computing Power Concepts: In the short term, the computing power chain still faces adjustment pressure. Investors should be cautious about pure computing power concept stocks and choose companies with diversified businesses.
5. Long-term Investment Perspective: AI concept stocks have long-term growth potential. Investors should adopt a long-term investment perspective, avoid chasing gains and selling at losses, and seize the long-term development opportunities of quality companies.

Conclusion: Investment Opportunities Under Market Differentiation

In the fourth week of October 2026, the AI concept stock market shows a clear divergence pattern, with the DeFAI application layer continuously leading, smart risk control and RWA tracks seeing major institutional investment, while the computing power chain continues to adjust. These changes reflect a restructuring of market investment logic for AI concept stocks, shifting from simply pursuing computing infrastructure to focusing on practical application scenarios and business models.

For investors, the current market environment brings both challenges and opportunities. The key is to grasp market trends and focus on companies that truly have technical barriers and commercial application value, avoiding being misled by short-term concept hype. With the deep integration of AI technology and financial technology, companies that can transform AI technology into actual commercial value will occupy a dominant position in future market competition.

Overall, the AI concept stock market has entered a more rational and mature development stage. Investors should pay more attention to companies' fundamentals and long-term development prospects rather than short-term stock price fluctuations. Only in this way can investors achieve stable returns in the wave of AI investment.