Open source securities: AI terminals start a new cycle of industrial chain upgrading, focusing on the direction of high prosperity and incremental links

The Zhitong Finance App learned that Open Source Securities released a research report saying that judging from consumer electronics industry data, growth in traditional categories such as mobile phones/PCs/tablets remained stable in 2025, while categories such as AI glasses/AI servers showed a rapid growth trend. In 2026, AI terminals will seize the four main investment lines of Apple, Huawei, Hongmeng, AI glasses, and OpenAI hardware. The bank said that in 2026, AI computing power will resonate with AI terminals, focusing on the direction of boom and growth.

The main views of Open Source Securities are as follows:

Sector review: Consumer electronics and components industry performance improved significantly in 2025, leading PCB growth

The overall trend of the electronics sector was strong in 2025. In the consumer electronics and components industry, the PCB industry led the way in growth and performance, mainly benefiting from rapid iteration and batch shipments of AI products; the consumer electronics industry performed well, new product shipments and national compensation policies drove demand; the passive components and optical optoelectronics industry lagged behind the electronics industry in terms of growth. Judging from industry data, traditional categories such as mobile phones/PCs/tablets have maintained steady growth, while categories such as AI glasses/AI servers are showing a rapid growth trend.

AI terminals: seize the four main investment lines of Apple, Huawei, Hongmeng, AI glasses, and OpenAI hardware in 2026

(1) Apple industry chain: Apple occupies a leading position in the global consumer electronics industry chain. Starting in 2025, the iPhone series will enter a new upgrade cycle. Apple plans to launch new products such as the iPhone 17e, folding screen iPhone, and AI glasses in 2026, and will continue to upgrade AI functions. Fruit Chain is expected to enter a 3-year innovation cycle. (2) Huawei Hongmeng industry chain: Huawei is a terminal brand with full-stack R&D and innovation capabilities. It will continue to launch new products in the field of folding screen devices in 2025. Hongmeng OS6 supports various AI agents, greatly improving the user experience. In the future, sales of Huawei terminals are expected to continue to grow as the localization rate of upstream chips and components increases. (3) AI glasses industry chain: As sales of AI eyewear products represented by Meta continue to rise, and domestic and foreign manufacturers actively enter the market, AI glasses are expected to become the next terminal product with sales volume of 10 million to 100 million. (4) OpenAI terminal hardware industry chain: OpenAI has introduced high-profile terminal hardware. Starting from the perspective of large AI model manufacturers, it is expected to create popular native AI hardware.

Components: Focus on upgrading trends in optics, batteries and fast charging, heat dissipation, structural parts and processes

(1) Optics: AI terminals support multi-modal interaction methods, and the improvement of visual perception capabilities relies on stronger optical hardware modules. The iPhone and Android teams continue to upgrade the optical performance of mobile phones. Honor Innovation proposes a mobile phone gimbal camera solution to support better AI visual interaction. (2) Battery and fast charging: The performance of AI terminals continues to improve, putting higher demands on battery life. New technologies and forms such as steel-case batteries, silicon-doped anodes, laminated batteries, and solid-state batteries continue to be applied, and the charging capacity and fast charging power of mobile phones are constantly improving. (3) Heat dissipation: AI terminal thermal management challenges are intensifying. Apple expects to gradually apply VC evaporators to more models and continue to upgrade, and the Android camp will begin to apply cooling solutions such as micropump liquid cooling and micro fans. (4) Structure & technology: Display technology is constantly being upgraded, and ultra-hard, scratch-resistant, and anti-reflective is gradually becoming the direction of cover glass upgrades; the lightweight fuselage and internal components are continuously increasing to drive the upgrading of the fuselage structure and manufacturing process, and 3D printing, MIM, and liquid metal processes are expected to penetrate more consumer electronic component manufacturing fields.

Components: AI computing power resonates with AI terminals, and PCBs and passive components are expected to continue the upward cycle

(1) AI terminal side: As SoC performance is upgraded and the internal integration of mobile phones increases, PCBs develop in the direction of high level, high density, and refinement, and the size of passive components continues to shrink; folding screen devices use more stand-alone FPC, and Apple's entry into the market is expected to further increase the folding screen phone market space. (2) AI computing power side: The iteration of AI chips continues to increase the PCB requirements and usage, and upstream CCL and supporting materials are upgraded simultaneously; the increase in AI server power consumption drives the upgrading of data center power supply architectures from traditional AC UPS to HVDC and SST, and the power supply in the cabinet is developing in the direction of high power and high density. The upgrade of the power supply architecture has boosted the usage and specifications of power devices and various passive components such as MLCCs, tantalum capacitors, chip inductors, and TLVR inductors.

Investment advice: AI computing power resonates with AI terminals in 2026, focusing on the direction of high boom and incremental growth

Beneficiaries: Fulian Industrial, Lixun Precision, Goertek, Huaqin Technology, Longqi Technology, Lansi Technology, Lingyi Intelligent Manufacturing, USX Electronics, Shenghong Technology, Shanghai Electric Power Co., Ltd., Pengding Holdings, Dongshan Precision, Shennan Circuit, Shengyi Technology, Jingwang Electronics, Shunluo Electronics, Sanhuan Group, etc.

Risk warning: Risk that the AI industry is not progressing as expected; risk of industry competition and pattern deterioration; risk of macroeconomic fluctuations.