The CITIC Securities Research Report said that in the past January, the global technology sector ushered in a round of large-scale correction. It can be seen that the boom in the AI industry has not fundamentally changed, nor has the company's EPS downgraded. The fundamentals are still high and tightly balanced, but market concerns about price increases, Capex ROIC questions, domestic open source models stir up the model pattern and token price expectations, interest rate hikes and other negative narratives such as excessive congestion in AI hardware transactions and positions, and the eventual reversal of trading leverage The market has been crushed. Looking ahead to August, for the technology sector and AI narrative as a whole, the reduction in chip structure and transaction congestion, and marginal changes in upstream and downstream profit distribution and bargaining power will still be the main factors affecting the overall direction of the technology sector in the next month. The sector is likely to enter a stage where new narratives, technology hardware, and software will enter a phase of rebalancing. However, judging from the direction of segmented transactions, it is recommended to focus on the direction where the chip structure is relatively good, the valuation is low, and the overall direction of being mistaken in this round of pullback. The increase in open source model capabilities drives “smart equality” and “token parity”. It is recommended to first focus on leading Internet companies and cloud vendors with low valuations and rich AI application ecosystems; after hardware shrinks, the production expansion chain is superior to the price increase chain; it is still recommended to focus on domestic equipment and FAB, where the boom is still improving; as well as optical communication circuits with low valuations and some application companies with positive performance reports.

The CITIC Securities Research Report said that in the past January, the global technology sector ushered in a round of large-scale correction. It can be seen that the boom in the AI industry has not fundamentally changed, nor has the company's EPS downgraded. The fundamentals are still high and tightly balanced, but market concerns about price increases, Capex ROIC questions, domestic open source models stir up the model pattern and token price expectations, interest rate hikes and other negative narratives such as excessive congestion in AI hardware transactions and positions, and the eventual reversal of trading leverage The market has been crushed. Looking ahead to August, for the technology sector and AI narrative as a whole, the reduction in chip structure and transaction congestion, and marginal changes in upstream and downstream profit distribution and bargaining power will still be the main factors affecting the overall direction of the technology sector in the next month. The sector is likely to enter a stage where new narratives, technology hardware, and software will enter a phase of rebalancing. However, judging from the direction of segmented transactions, it is recommended to focus on the direction where the chip structure is relatively good, the valuation is low, and the overall direction of being mistaken in this round of pullback. The increase in open source model capabilities drives “smart equality” and “token parity”. It is recommended to first focus on leading Internet companies and cloud vendors with low valuations and rich AI application ecosystems; after hardware shrinks, the production expansion chain is superior to the price increase chain; it is still recommended to focus on domestic equipment and FAB, where the boom is still improving; as well as optical communication circuits with low valuations and some application companies with positive performance reports.