SINOLINK SECURITIES·2026-01-04 08:13Investment Rating - The report maintains a positive outlook on the AI-PCB and core computing hardware sectors, as well as the Apple supply chain and industries benefiting from self-control [3][26]. Core Insights - The demand for AI is driving significant investments in infrastructure, with major cloud service providers expected to invest a total of $600 billion by 2026, leading to substantial price increases in storage chips [1]. - The report predicts that storage contract prices will continue to rise by 30% to 40% in Q1 2026, with specific increases in DDR5 RDIMM memory prices expected to exceed 40% [1][26]. - The AI hardware supply chain is expected to see strong performance in Q4 and the first half of the following year, driven by robust demand from companies like NVIDIA and major cloud providers [1][3]. Summary by Sections 1. Consumer Electronics - The report highlights the ongoing expansion of AI applications in consumer electronics, particularly in the Apple supply chain and smart glasses, with a focus on enhancing processing power and memory [4]. - AI mobile applications are expected to see significant growth, with various manufacturers launching new products [4]. 2. PCB - The PCB industry is experiencing high demand, particularly for copper-clad laminates, driven by the automotive and industrial sectors, as well as AI applications [5]. - The report indicates that the PCB market is maintaining a high level of activity, with price increases expected due to supply constraints [5]. 3. Semiconductor Industry - The storage segment is projected to see a significant upturn, with DRAM prices expected to rise by 18% to 23% in Q4 2025 due to increased demand from cloud service providers [19][22]. - The semiconductor equipment sector is also expected to benefit from rising demand, with a focus on domestic production capabilities in light of export controls [23][25]. 4. AI and Computing Hardware - The report emphasizes the strong demand for AI-related hardware, with companies like TSMC expected to ramp up production of advanced nodes to meet this demand [1][26]. - The AI hardware supply chain is projected to experience substantial growth, with companies actively expanding production capacities [1][3]. 5. Market Trends - The report notes that the overall market sentiment remains positive, with various sectors showing signs of recovery and growth, particularly in AI and semiconductor-related industries [3][26]. - The report suggests that companies involved in AI hardware and related technologies are well-positioned to benefit from ongoing trends in the market [1][26].