Micron Technology(US:MU) Shanghai Securities·2025-07-01 11:19Investment Rating - The report maintains an "Overweight" rating for the electronics industry [1] Core Viewpoints - Driven by AI, advanced chip manufacturing capacity is expected to grow by 69% by 2028. The global semiconductor manufacturing industry is projected to maintain strong growth, with a compound annual growth rate (CAGR) of 7% from the end of 2024 to 2028, reaching a record monthly capacity of 11.1 million wafers [3][5] - Advanced process capacity (7nm and below) is anticipated to expand significantly, increasing from 850,000 wafers per month in 2024 to a historical high of 1.4 million wafers per month by 2028, reflecting a CAGR of approximately 14%, which is double the industry average [3][5] - The report highlights that AI continues to be a transformative force in the global semiconductor industry, driving significant investment and technological innovation [3][5] Market Performance Review - During the past week (June 23-27), the SW Electronics Index rose by 4.61%, outperforming the CSI 300 Index by 2.66 percentage points. Among six sub-sectors, the performance was as follows: Other Electronics II (7.88%), Components (6.66%), Semiconductors (4.55%), Consumer Electronics (3.99%), Electronic Chemicals II (3.53%), and Optical Electronics (3.49%) [3] Investment Recommendations - The report suggests maintaining an "Overweight" rating for the electronics sector, indicating a potential recovery in the semiconductor industry in 2025. It recommends focusing on undervalued stocks in semiconductor design with real performance and low PE/PEG ratios, as well as key materials for semiconductors and the silicon carbide industry [5]