SINOLINK SECURITIES·2026-02-01 09:53Investment Rating - The report maintains a positive outlook on AI-related sectors, particularly AI-PCB, core computing hardware, semiconductor equipment, and the Apple supply chain, indicating a strong demand and growth potential in these areas [4][26]. Core Insights - North American companies are significantly increasing their AI spending, with Meta projecting capital expenditures between $115 billion and $135 billion for 2026, a substantial increase from approximately $70 billion in 2025. This investment is aimed at enhancing data centers, servers, and network infrastructure [1]. - Meta's AI advancements have positively impacted its business, improving user engagement and advertising performance on platforms like Facebook and Instagram [1]. - Microsoft also reported a substantial increase in capital expenditures, reaching $37.5 billion in Q4 2025, driven by strong demand for cloud services and AI-related commitments [1]. - The semiconductor and storage sectors are experiencing robust growth, with companies like SanDisk reporting a 61% year-over-year revenue increase for Q2 2026, and expectations of continued strong performance in the first half of 2026 [1][4]. - The report highlights a significant increase in demand for AI-related products, particularly in the ASIC market, with expectations of explosive growth in 2026-2027 [1][26]. Summary by Sections 1. Consumer Electronics - The report emphasizes the ongoing expansion of AI applications in consumer electronics, particularly in the Apple supply chain and smart glasses, driven by advancements in multi-modal interaction and model optimization [5]. - AI mobile applications are expected to see increased demand, with a focus on products like foldable phones and AI glasses [5]. 2. PCB - The PCB industry is maintaining a high level of demand, with expectations of price increases due to tight supply conditions and rising material costs [6]. - The report suggests that the PCB sector will continue to benefit from strong demand in automotive and industrial applications, alongside AI growth [6]. 3. Components - The report notes that AI-driven upgrades in passive components, such as MLCCs, are expected to lead to increased usage and price improvements [18]. - The LCD panel market is stabilizing, with effective production control leading to price stability [18]. 4. IC Design - The storage sector is entering a clear upward trend, with expectations of rising DRAM prices driven by increased demand from cloud service providers and consumer electronics [20][22]. - The report highlights the potential for significant growth in the storage market, particularly for enterprise-level storage solutions [20]. 5. Semiconductor Equipment - The semiconductor equipment sector is experiencing a robust upward trend, with significant growth in demand for advanced packaging and equipment due to geopolitical factors and domestic production needs [23][24]. - The report emphasizes the importance of domestic semiconductor equipment and materials in light of export controls and the need for self-sufficiency [23]. 6. Specific Companies - Companies like Shenghong Technology and Northern Huachuang are highlighted for their strong positions in the PCB and semiconductor equipment markets, respectively, with expectations of continued growth driven by AI and data center demands [27][28]. - The report also mentions companies like Zhaoyi Innovation and Lianyi Manufacturing for their advancements in storage solutions and AI applications [31][32].