CITIC Securities research report pointed out that due to the combined effects of market trading expectations of the Fed's interest rate cut, the US election, and concerns about the sustainability of AI investment, there has been a significant adjustment in the recent US semiconductor & hardware sector. Based on the analysis of the underlying logic of this wave of AI technology, the willingness of technology giants to invest in the AI field, and the balance sheet support capabilities, it is judged that the continuous investment in the global AI computing power field can be sustained in the next 2-3 years. In the long term, it is necessary to solve the business loop between AI upstream CAPEX investment and downstream application output. At the same time, the current global semiconductor industry's upward cycle has only experienced 3-4 quarters and is still in the first half of this cycle. The upward trend and duration of the sector's stock price have not yet reached the historical cycle's average level. It continues to be optimistic about the investment opportunities in the US semiconductor & hardware sector in the next 12 months and recommends downplaying the short-term impact of market fluctuations and focusing on the two core themes of high prosperity and bottoming out recovery.
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China Securities: Continues to be optimistic about the investment opportunities in US semiconductor & hardware sector in the next 12 months
CITIC Securities research report pointed out that due to the combined effects of market trading expectations of the Fed's interest rate cut, the US election, and concerns about the sustainability of AI investment, there has been a significant adjustment in the recent US semiconductor & hardware sector. Based on the analysis of the underlying logic of this wave of AI technology, the willingness of technology giants to invest in the AI field, and the balance sheet support capabilities, it is judged that the continuous investment in the global AI computing power field can be sustained in the next 2-3 years. In the long term, it is necessary to solve the business loop between AI upstream CAPEX investment and downstream application output. At the same time, the current global semiconductor industry's upward cycle has only experienced 3-4 quarters and is still in the first half of this cycle. The upward trend and duration of the sector's stock price have not yet reached the historical cycle's average level. It continues to be optimistic about the investment opportunities in the US semiconductor & hardware sector in the next 12 months and recommends downplaying the short-term impact of market fluctuations and focusing on the two core themes of high prosperity and bottoming out recovery.