Core Viewpoint - The semiconductor industry is experiencing a "super bull market" driven by AI-related demand, with Goldman Sachs maintaining a bullish outlook on the sector, particularly on AI infrastructure and semiconductor equipment [1][3][4]. Semiconductor Industry Outlook - Goldman Sachs emphasizes that AI-related infrastructure, such as NVIDIA's AI GPUs and Broadcom's AI ASICs, is the most certain long-term growth narrative in the semiconductor industry [1][3]. - The firm predicts a significant increase in AI-related revenue for companies like Broadcom, which expects its AI revenue to exceed its software and non-AI business revenue within two years [5][8]. Investment Recommendations - Goldman Sachs' top semiconductor investment picks include Broadcom (AVGO.US), Applied Materials (AMAT.US), and Cadence Design Systems (CDNS.US), while advising caution on ARM (ARM.US) and Skyworks (SWKS.US) [3][8]. - The firm believes that the ongoing AI infrastructure investment wave could reach $2 trillion, indicating a robust growth potential for AI-related companies [4]. Market Dynamics - The demand for AI computing power is expected to grow exponentially, driven by generative AI applications and AI agents, which will significantly boost the AI infrastructure market [2][4]. - The AI ASIC market is anticipated to expand, with large cloud service providers leading the customization of AI ASIC chips for specific workloads, enhancing efficiency and cost-effectiveness [6][9]. EDA and Chip Design - The EDA software and chip IP sectors are also favored by Goldman Sachs, as they are expected to benefit from the unprecedented AI infrastructure wave [2][8]. - Cadence Design Systems is noted for its leadership in EDA tools, with increasing adoption of AI-assisted design tools, which are improving design efficiency and reducing cycle times [7][11]. Equipment and Manufacturing - Applied Materials is highlighted for its focus on HBM and advanced packaging equipment, which are crucial for AI infrastructure, with expectations of significant revenue growth in these areas [6][10]. - The semiconductor equipment sector is projected to see substantial growth, particularly in HBM and advanced packaging technologies, driven by the demand for AI chips [1][10].

Group 1 - The report indicates that developed and emerging markets experienced gains during the week of September 1 to September 5, 2025, with emerging markets rising by 1.4% and developed markets by 0.3% [1] - In the Hong Kong stock market, the Hang Seng Technology Index increased by 0.2%, the Hang Seng Index rose by 1.4%, and the Hang Seng Stock Connect gained 1.5%. The healthcare and materials sectors led the gains [1] - The report suggests that the Hong Kong stock market is still in a volatile upward trend, requiring new momentum for further increases, particularly in technology and internet leading companies [1][2] Group 2 - The report highlights that the U.S. job market is showing signs of weakness, with August non-farm payrolls adding only 22,000 jobs, significantly below the expected 75,000 and the previous month's revised figure of 79,000 [2] - The report notes that Broadcom's AI ASIC revenue growth exceeded expectations, with a projected 63% revenue growth rate expected to continue for the next ten quarters, driven by a significant order of $10 billion from a new client [2] - The report emphasizes that the U.S. stock market is likely to experience increased volatility in the short term, with the potential for interest rate cuts in September depending on economic data [3] Group 3 - The report recommends focusing on small-cap stocks and interest rate-sensitive growth stocks during the interest rate cut cycle, as these sectors are expected to benefit from improved earnings and liquidity [4] - It is noted that the macroeconomic fundamentals in the U.S. are slowing but not in a recession, with stable wage income supporting consumption and nominal growth [4] - The report anticipates that the AI narrative in the U.S. stock market will continue to gain traction in the medium to long term, supported by ongoing technological advancements and policy measures [4] Group 4 - The report indicates that global stock ETF inflows have slowed, with a net inflow of $13.094 billion and marginal outflows of $22.679 billion, while bond ETFs also saw reduced inflows [7] - It highlights that the U.S. stock ETF saw the highest net inflow of $6.57 billion, followed by Europe, while emerging markets, particularly China, experienced significant inflows [7] - The report identifies technology, materials, and financial sectors as the top three industries for net inflows, while utilities saw the most significant outflows [7]