Investment Rating - The report assigns a medium-high risk rating to the industry [3] Core Insights - The semiconductor sector has shown a cumulative increase of 3.68% over the past two weeks, outperforming the CSI 300 index by 2.30 percentage points, ranking 6th among the Shenwan industries [4][11] - The semiconductor sector's price-to-earnings (PE) ratio as of June 26 is 43.91, which is at the 80.39% percentile for the past five years and 69.41% for the past ten years [4][16] Market Review and Valuation - The semiconductor sector has seen a cumulative increase of 6.34% in June, outperforming the CSI 300 index by 3.58 percentage points, ranking 5th among Shenwan industries [11] - Year-to-date, the sector has increased by 1.60%, outperforming the CSI 300 index by 1.31 percentage points, ranking 18th among Shenwan industries [11] Industry News - Xiaomi has launched AI glasses priced from 1999 yuan, featuring a 12MP camera and support for third-party apps [21] - Marvell reported significant growth in AI infrastructure investment, with capital expenditures from major cloud service providers expected to rise from $248 billion last year to $327 billion this year [21] - Foxconn has optimistic projections regarding AI server orders extending to 2027, indicating strong demand in the AI sector [21] Industry Data - Global smartphone shipments in Q1 2025 reached 305 million units, a year-on-year increase of 1.53% [23] - In April 2025, smartphone shipments in China totaled 22.29 million units, a year-on-year decrease of 1.65% [23] - Liquid crystal panel prices in June 2025 showed a slight decline, with prices for various sizes ranging from $38 to $176 per unit [27] Weekly Perspective - The report suggests focusing on two main lines for investment: AI computing power and AI end-side applications, with expectations for increased demand in both areas [30] - The report highlights the potential for significant growth in AI server shipments and the importance of high-end PCB and CCL production capabilities [30] Key Stocks to Watch - The report identifies several companies to monitor, including Luxshare Precision (002475.SZ) and Pengding Holdings (002938.SZ), which are expected to benefit from AI strategies and demand for high-density printed circuit boards [31]