Core Viewpoint - The investment outlook for 2026 remains optimistic, with technology continuing to be a dominant theme, alongside structural opportunities in renewable energy and non-renewable resources following a valuation recovery in 2025 [1][6]. Investment Insights - Institutions express strong confidence in equity assets for 2026, with a focus on three key trends: AI technology development, accelerated domestic production, and the recovery of industry cycles [2][7]. - The AI-related industry chain is expected to present incremental opportunities due to technological breakthroughs [2][7]. - The semiconductor industry is projected to continue its self-sufficiency push, with attention on equipment, materials, wafer foundry, and IC design sectors [2][7]. - The traditional semiconductor cycle is recovering, with storage as a key indicator, suggesting a healthier supply-demand structure across the industry [2][7]. Sector Focus - Jiashi Fund identifies five key sectors for investment in 2026: manufacturing (with a focus on smart manufacturing), information technology (including next-gen mobile communications and quantum information), materials (covering advanced materials and new material innovations), energy (focusing on nuclear, hydrogen, and biomass), and space industries [3][8]. - Wanji Fund emphasizes strategic resource products in the first half of 2026, particularly those benefiting from overseas fiscal expansion and monetary easing, such as gold, silver, copper, rare earths, and minor metals [3][8]. - Traditional sectors like service consumption, building materials, chemicals, and coal are expected to see improvements due to policy support and economic recovery [3][8]. Aggressive Sector Outlook - Zhongjia Fund maintains a focus on technology, particularly AI, as a key area for both short-term performance and long-term narratives [4][9]. - The lithium battery sector is viewed as at the bottom of its cycle, with potential for a reversal in 2026, particularly in the electrolyte segment [4][9]. - The commercial aviation sector may experience short-term overheating but is expected to have long-term sustainability due to clear timelines and national support [4][9].

Group 1: Semiconductor Industry Outlook - SEMI predicts global semiconductor manufacturing equipment sales will reach a record $125.5 billion by 2025, a year-on-year increase of 7.4% [1] - The semiconductor sector has shown strong market performance, with the Shenwan Semiconductor Index rising 9.63% from June 6 to July 25 [1] - The AI-related concept indices have seen significant growth, with the Wind Deepseek concept index up over 52% year-to-date and the AI computing power concept index rising nearly 25% [1] Group 2: Automotive Industry Performance - In June 2025, the retail sales of passenger cars in China reached 2.08 million units, a year-on-year increase of 18.1% and a month-on-month increase of 7.6% [4] - The wholesale share of domestic brands in passenger cars was 67.1%, up 2.2% year-on-year, while the retail share was 64.2%, up 5.6% year-on-year [5] - Overall inventory of passenger car manufacturers decreased by 150,000 units in June, indicating reduced inventory pressure [5] Group 3: AI and Server Demand - AI server demand remains strong, with six Taiwanese ODM manufacturers reporting a combined revenue of NT$582.3 billion in June, a year-on-year increase of 88% [6] - Companies in downstream sectors such as chatbots and AI programming are experiencing rising average revenue rates and daily active user numbers [6] Group 4: Semiconductor Sales Growth - The global semiconductor sales reached $58.98 billion in May 2025, a year-on-year increase of 27.03%, marking a historical monthly high [7] - The Semiconductor Industry Association (SIA) forecasts global semiconductor sales to grow by 11.2% and 8.5% in 2025 and 2026, respectively [7] - The growth in both advanced and mature processes is driving strong momentum in the semiconductor industry [7]