Group 1 - Semiconductor stocks experienced a rise in early trading, with notable increases in shares of SMIC (5.09% to HKD 75.35), Hua Hong Semiconductor (3.88% to HKD 76.3), and Shanghai Fudan (2.73% to HKD 40.58) [1] - According to Guosen Securities, over half of the 146 A-share semiconductor companies, including SMIC and Hua Hong, are expected to achieve record quarterly revenues by 2025, driven by AI and self-sufficiency initiatives [1] - The report highlights the growth of domestic chip design companies and the trend towards high-end domestic chips, recommending companies like SMIC and Hua Hong Semiconductor as beneficiaries of this trend [1] Group 2 - Industrial outlook for 2026 indicates a convergence of "price cycle" and "product iteration cycle" in the storage sector, with capital expenditures expected to exceed previous forecasts, leading to sustained growth in equipment orders [1] - The long-term impact of the AI wave suggests that domestic replacements for computing power and high-performance storage will require significant time and investment, but there is optimism regarding capital expenditures for advanced domestic processes [1] - The industry is expected to maintain high levels of capital expenditure, with a strong outlook for domestic substitution trends in semiconductor wafer manufacturing, equipment, materials, and components [1]