Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: December 4, 2025
Excerpt from China Galaxy International Securities (Hong Kong) Co., Limited report.
Report Summary
- The semiconductor and technology sector in China is entering a new era driven by artificial intelligence (AI), with a shift in focus from hardware and computing power to AI-driven applications—marking what the industry calls its “iPhone moment”.
- Key growth drivers include domestic substitution of semiconductor components, strong AI and high-performance computing (HPC) demand, a new storage chip cycle, and rapid adoption of edge AI in consumer electronics such as smartphones and smart glasses.
- Semiconductor sub-sectors set for sustained growth include domestic computing chips, storage chips, manufacturing equipment, and semiconductor materials industries such as photolithography and CMP polishing materials.
- Consumer electronics brands are accelerating AI integration, and new smart hardware (e.g., AI glasses, AI headphones) is expected to create a second growth curve for the industry.
- Investment recommendations focus on companies leading in AI chips, semiconductor manufacturing, and components essential to AI infrastructure.
- Main risks include slower-than-expected AI application adoption, weak global economic demand, lagging progress in domestic technology self-reliance, and geopolitical uncertainties.
Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International Securities (Hong Kong) Co., Limited website : chinastock.com.hk
