Core Insights - The report emphasizes that the pessimistic expectations surrounding computing infrastructure are reversing, with leading companies like Nvidia and Broadcom showing strong market performance, indicating a sustained high prosperity trend in computing infrastructure [3][4][5] - The AI industry chain is expected to have a certain rebound potential under the influence of overseas mapping and market style rotation, making it an optimal time for investment [2][4][6] Computing Infrastructure - Recent performance in the A-share TMT sector has been notable, with telecommunications, computers, electronics, and media sectors rising by 2.42%, 2.42%, 2.23%, and 1.34% respectively, while computing infrastructure components like optical modules, copper connections, and circuit boards saw increases of 5.18%, 4.45%, and 3.88% [4] - The launch of new AI products, such as AR glasses, is accelerating the integration of AI applications from concept to execution, with major tech companies like Microsoft and Google heavily investing in this area [6] AI Industry Chain - The report highlights that the AI application landscape is transitioning towards deep integration and task execution, with significant developments expected at the upcoming ByteDance Volcano Engine 2025 conference [6] - The computing infrastructure sector, particularly components directly benefiting from the high prosperity of overseas computing leaders like Nvidia, is identified as a key area for investment focus [6]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating expected performance above the market index by more than 10% [5][38]. Core Views - The ongoing US-China tariff disputes are intensifying the urgency for self-sufficiency in the electronic sector. Despite a slight decline in the overall electronic market, certain sub-sectors like components have shown resilience with a 2.21% increase [1][10]. - The semiconductor industry is facing challenges due to export restrictions on EDA tools, emphasizing the strategic importance of domestic production capabilities. Companies with potential for domestic growth, such as 圣邦股份 and 中芯国际, are recommended [2]. - The storage industry is expected to recover, with NAND Flash prices rebounding as inventory levels normalize. Companies like 德明利 and 江波龙 are highlighted for their potential in this sector [3]. - Nvidia's quarterly revenue continues to set records, driven by strong demand for AI infrastructure, suggesting a high-growth investment theme in AI-related technologies. Companies like 工业富联 and 立讯精密 are recommended for continued observation [4]. Summary by Sections Market Trends - The overall electronic industry saw a decline of 0.59%, with the semiconductor sector facing pressures from tariff disputes and performance concerns from major players like SMIC [1][10]. - The semiconductor sub-sector is under scrutiny due to export restrictions impacting EDA tools, which could hinder the entire supply chain's growth [2]. Storage Industry - NAND Flash prices decreased by 15% in Q1 2025 but are expected to rebound in Q2 2025 as inventory levels stabilize. The top five NAND Flash manufacturers reported a combined revenue of $12.02 billion, a nearly 24% decrease [3]. AI and Semiconductor Growth - Nvidia reported a revenue of $44.062 billion for FY1Q26, with data center revenue reaching $39.112 billion, reflecting a year-over-year growth of 73.3%. The demand for AI infrastructure is driving significant growth in this area [4]. Key Investment Recommendations - The report suggests focusing on companies with strong potential in the semiconductor and storage sectors, including 中芯国际, 德明利, and 立讯精密, among others [9][10].