EBSCN·2025-06-13 09:17Investment Rating - The report maintains a "Buy" rating for the semiconductor industry, indicating an expected investment return exceeding the market benchmark by more than 15% over the next 6-12 months [7]. Core Insights - The North American AI computing sector is leading the technology sector, with strong demand for AI inference and sovereign AI driving significant growth in AI chip shipments. Major companies like Nvidia, AMD, and Broadcom have seen stock price increases of 54%, 38%, and 75% respectively from April 7 to June 12, 2025, compared to a 26% rise in the Nasdaq index [1]. - The storage market is recovering, with prices for various DDR3 and DDR4 products rising due to supply constraints from major manufacturers like Micron and Samsung. This trend is expected to continue, with price increases projected for DRAM and NAND Flash products in Q3 2025 [3]. - Non-AI application chip demand is recovering weakly, with global wafer fab utilization rates remaining low at 60%-70%, below the healthy range of 80%-90%. Additionally, IDC has significantly downgraded its forecast for global smartphone shipments in 2025 from a 2.6% increase to just 0.6% [2]. Summary by Sections AI Sector - Strong demand for AI inference and sovereign AI is evident, with Nvidia reporting explosive growth in AI inference demand and significant partnerships for AI infrastructure development in Europe [1]. - Nvidia's supply capabilities have improved, with a strong delivery rate of NVL racks and expectations for increased production in FY26 [1]. - ASIC deployment is expected to increase significantly in 2026, with Broadcom anticipating major deployments from key clients [1]. Non-AI Sector - The recovery in non-AI chip demand is sluggish, with low wafer fab utilization rates and a decline in PC GPU and CPU shipments in Q1 2025 [2]. - The smartphone market is facing challenges, with a drastic reduction in shipment growth forecasts due to economic uncertainties and reduced consumer spending [2]. Storage Market - The storage market is showing signs of recovery, with price increases for DDR3 and DDR4 products driven by supply constraints and improved demand from downstream customers [3]. - TrendForce forecasts price increases for DRAM and NAND Flash products in Q3 2025, indicating a positive outlook for the storage segment [3]. Investment Recommendations - The report recommends investing in companies like SMIC, which is positioned to benefit from domestic AI computing demand and has a strong capacity release in high-end production lines [3]. - Hua Hong Semiconductor is also recommended due to its ability to secure more domestic orders amid weak non-AI demand and its engagement with European IDM manufacturers [3]. - Shanghai Fudan is suggested for its strong smart meter business and recovery in non-volatile storage, with expansion into automotive and IoT sectors [3].