Core Viewpoint - Semiconductor stocks are experiencing an upward trend, driven by increasing demand for AI computing power and domestic advancements in chip technology [1] Group 1: Market Performance - Semiconductor stocks rose in early trading, with Hua Hong Semiconductor increasing by 5.22% to HKD 76.6 and SMIC rising by 4.14% to HKD 71.7 [1] Group 2: Industry Outlook - Zhongyuan Securities forecasts that the semiconductor industry will continue its upward trend into 2025, influenced by escalating U.S. export controls and China's "14th Five-Year Plan" emphasizing technological self-reliance [1] - The demand for AI computing power is expected to remain strong through 2026, with significant growth in cloud-side AI hardware infrastructure and innovations in edge AI applications such as AI glasses and intelligent driving [1] - The semiconductor cycle is anticipated to be positively impacted by AI advancements, with the memory sector potentially entering a super cycle [1] Group 3: Domestic Developments - Dongguan Securities notes that the explosive growth in large model usage has led the industry into a phase of large-scale implementation, driving increased upstream computing power demand [1] - Domestic AI chip companies are rapidly developing, achieving significant progress in domestic substitution, with companies like Moer and Muxi accelerating their capital market strategies [1] - Major internet firms, including Tencent, are actively adapting to domestic computing power chips, which is expected to accelerate the formation of a domestic computing ecosystem [1]