Summary of Key Points from the Conference Call Industry and Company Overview - **Industry**: China Multi-Asset and Equity Markets - **Focus**: The impact of the 15th Five-Year Plan (FYP) on China's economy and stock market, particularly in sectors like Technology, Healthcare, Internet, and Basic Materials Core Insights and Arguments 1. **Positive Catalysts from the 15th FYP**: The FYP aims to consolidate the economy, endorse technological developments, and build a strong domestic market, which is expected to positively influence the market through 2026 [2][24][26] 2. **Export Growth**: China's share of global exports increased by 0.4 percentage points year-on-year to 15.0% in 2025, with expectations for continued growth in 2026 due to comprehensive value chains and automation in manufacturing [3][38] 3. **EPS Growth Projections**: HSI EPS growth is projected to rise to 9.1% year-on-year in 2026 from 2.2% in 2025, driven by reduced competition in the internet sector and upward revisions in other sectors [4][44] 4. **Sector Upgrades and Downgrades**: Basic Materials upgraded to Overweight due to rising commodity prices, while Consumer is downgraded to Neutral and Auto to Underweight due to low consumption prospects and retail sales declines [5][49] 5. **Economic Outlook**: A measured policy expansion is anticipated, with a fiscal stimulus of approximately RMB 1 trillion and rate cuts expected to support economic growth [6][12] Additional Important Insights 1. **K-Shaped Growth Pattern**: The economy is experiencing a K-shaped recovery, with the new economy performing well while traditional sectors lag behind [6][18] 2. **Government Debt and Fiscal Policy**: The fiscal deficit rose to 4% in 2025, with limited room for further expansion in 2026 due to rising government gearing [14][41] 3. **Youth Unemployment**: High youth unemployment remains a concern, hovering around 20%, while overall unemployment is less of a concern due to rising retirement numbers [18][22] 4. **Trade Relations**: The signing of a China-US trade deal has improved confidence in international trade, which is expected to boost export growth in 2026 [32][36] 5. **Sector Preferences**: The technology sector is prioritized, with expectations for continued upgrades in AI server supply chains and hardware, while the software sector is expected to recover earnings as IT budgets normalize [28][29] Conclusion The conference call highlighted a positive outlook for China's economy and stock market driven by the 15th FYP, with specific sectoral shifts and growth projections. The focus on technological innovation and export competitiveness positions China favorably for the coming years, despite challenges in traditional sectors and youth unemployment.

Core Insights - The iShares Semiconductor ETF (SOXX) focuses specifically on semiconductor companies, while the State Street Technology Select Sector SPDR ETF (XLK) offers broader exposure to the technology sector at a lower cost [1][5] Fund Comparison - SOXX consists of 30 positions entirely within the technology sector, heavily weighted towards semiconductors, with major holdings in Advanced Micro Devices, Broadcom, and Nvidia [2] - XLK holds approximately 70 stocks, covering a wide range of technology subindustries, including hardware, software, IT services, and communications equipment, with top positions in Nvidia (13.72%), Apple (12.82%), and Microsoft (11.17%) [3] Performance Metrics - SOXX has achieved a five-year compound annual growth rate (CAGR) of 21.1%, but has also faced significant volatility, including a maximum drawdown of over 45% in 2022 [6] - XLK has a five-year CAGR of 18.6% and a maximum drawdown of 33.5%, indicating greater stability compared to SOXX [7] Cost and Yield - The expense ratio for SOXX is 0.34%, while XLK is significantly lower at 0.08%, with yields of 0.62% for SOXX and 0.55% for XLK [4][6] Investor Suitability - More conservative investors may prefer XLK due to its lower fees and reduced historical drawdowns, while aggressive investors might be attracted to SOXX's higher returns and concentrated sector focus [8]

Group 1 - The Vanguard Information Technology ETF (VGT) offers a low-cost entry into the tech sector with an expense ratio of 0.09% and a share price of approximately $757 as of January 5, 2026 [2][5] - The ETF tracks the MSCI US Investable Market Index (IMI)/Information Technology 25/50 index, holding over 300 stocks, with significant weightings in major companies like Nvidia (16.6%), Apple (15.3%), and Microsoft (12.4%) [5][6] - Despite a concentration in a few large stocks, the ETF provides exposure to various subcategories within the tech sector, including semiconductors, software, and hardware [7] Group 2 - The tech sector is experiencing a significant boom, driven by innovations such as artificial intelligence, making it a compelling investment opportunity for both short- and long-term strategies [1][3][8] - Current high valuations in tech stocks do not deter their importance in investor portfolios, although there are risks associated with capital expenditures and potential economic slowdowns [9]

Despite a year marred by geopolitical tensions, DeepSeek fears, and persistent whispers of a tech bubble, the AI trade defied skeptics to anchor the stock market in 2025.With the Nasdaq-100 finishing up 20.2%, I/O Fund analyst Beth Kindig has released a review of the year’s top 10 tech stocks, offering a blueprint for identifying the next wave of market leaders in 2026.The ‘Real’ AI Trade EmergesThe 2025 market was defined by a decisive rotation toward the “physical” layers of the AI stack. While early boom ...

+1(212)902-8618 | michael.ng@gs.com Goldman Sachs & Co. LLC Katherine Murphy +1(212)902-1151 | katherine.a.campagna@gs.com Goldman Sachs & Co. LLC 8 January 2026 | 7:00PM EST Equity Research Americas Technology: Hardware: CES 2026 investor meetings (DELL/HPQ/PENG) key takeaways We attended CES 2026 in Las Vegas and hosted investor meetings on January 7-8 with DELL, HPQ, and PENG. Key takeaways include: (1) While industry PC demand may be challenged from higher pricing, DELL expects it will be able to delive ...

Core Viewpoint - Super Micro Computer is experiencing a turnaround, moving from survival concerns to operational execution, driven by a strengthened relationship with NVIDIA and expanded manufacturing capacity [2][18]. Business Update - Shares of Super Micro rallied approximately 5% on January 5, stabilizing in the $30 to $31 range, indicating a positive shift in investor sentiment [1]. - The company has expanded its manufacturing capacity to support NVIDIA's Vera Rubin and Rubin AI platforms, signaling a healthy partnership with a key player in the AI chip market [2]. Compliance and Governance - Super Micro regained full compliance with Nasdaq listing requirements in February 2025, stabilizing its corporate governance after an investigation found no evidence of management fraud [4]. - The appointment of BDO USA as the independent auditor further enhances governance stability [4]. Financial Position - Super Micro secured a new $2 billion revolving credit facility in late December 2025, providing essential liquidity to support its capital-intensive business model [5][9]. - The company currently has the capacity to ship over 2,000 liquid-cooled racks per month, which is crucial for meeting demand [10]. Technology and Competitive Advantage - Super Micro has invested in Direct Liquid Cooling (DLC) technology, positioning itself ahead of competitors in managing the heat generated by next-generation AI chips [7][8]. - The company's Building Block architecture allows for quicker integration of new components, maintaining a strong partnership with NVIDIA [11]. Revenue and Profitability - For Q1 FY2026, Super Micro reported revenue of approximately $5 billion, which was below Wall Street's expectations of $6.5 billion [12]. - Management projects revenue for Q2 FY2026 to jump to between $10 billion and $11 billion, indicating a potential doubling of revenue in a single quarter [13]. - Gross margins have recently dipped to approximately 9.3%, down from the historical range of 15-17%, primarily due to a price war with Dell Technologies [14][15]. Strategic Focus - Super Micro is adopting a volume strategy, sacrificing short-term profit margins to secure long-term contracts with major clients, betting on customer retention once liquid-cooled racks are installed [16]. - The company is positioned to generate over $10 billion in quarterly revenue, with the governance crisis and liquidity issues resolved [18].

Soaring memory prices are good news for SanDisk, Seagate Technology and Western Digital but not so cheerful for hardware companies such as Apple and Dell. ...

Night Watch Investment Management, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Despite experiencing high volatility in individual stocks during Q4, the fund finished the quarter approximately flat. Overall, the firm is pleased with how 2025 unfolded. Like 2024, the results were broad-based and did not rely on any single security.  In addition, please check the fund’s top five holdings to know its best picks in 2025. In its ...

January 6, 2026 09:50 AM GMT Global Technology | Asia Pacific M Foundation Global Tech Outlook 2026 Morgan Stanley & Co. International plc+ Shawn Kim Equity Analyst Shawn.Kim@morganstanley.com +44 20 7677-1018 Lee Simpson Equity Analyst Lee.Simpson@morganstanley.com +44 20 7425-3378 Nigel van Putten Equity Analyst Nigel.Putten@morganstanley.com +44 20 7425-2803 Morgan Stanley Asia Limited+ Duan Liu Equity Analyst Duan.Liu@morganstanley.com +852 2239-7357 Morgan Stanley does and seeks to do business with com ...

展望后市，国金证券指出，北美四大云厂AI基建投资将达历史新高，带动存储持续供不应求、价格攀 升，台积电2nm制程受益于AI需求订单激增。建议关注CES科技展AI相关新品动态，AI硬件产业链业绩 有望持续高增长，重点看好AI-PCB、核心算力硬件、设备及苹果产业链。 相关ETF：科创50ETF(588000)。 1月5日，A股三大指数高开，科创50指数盘初涨幅扩大至2%。科创50ETF(588000)早盘高开，最大涨幅 达2.26%。盘面上，存储板块盘初拉升，佰维存储上涨8.76%，中微电子上涨7.73%，西部超导上涨 7.27%，拓荆科技、柏楚电子等涨超5%；截至发文，科创50ETF(588000)成交额达9.83亿元。 科创50ETF(588000)追踪科创50指数，指数持仓电子行业69.39%，计算机行业4.88%，合计74.27%，与 当前人工智能、机器人等前沿产业的发展方向高度契合。同时涉及医疗器械、软件开发、光伏设备等多 个细分领域，硬科技含量高，看好中国硬科技长期发展前景的投资者建议持续关注。 消息面上，1月1日，DeepSeek发布了新论文，提出了名为mHC(流形约束超连接)的新架构，可提升算力 ...