2025-2026 Investment Landscape and Stock Selection Strategy for the Electronics Industry Amid the Resonance of Surging Domestic Computing Power, Accelerated Semiconductor Equipment Volume, and AI Computing Power

According to a research report from CITIC Securities, in 2025, the resonance between independent controllability and AI drove outstanding performance of electronics-related sectors, and this trend is expected to intensify in 2026. Domestic computing power is in the ascendant, with both earnings elasticity and investment certainty, and is expected to replicate the long bull market of U.S. stocks since 2023[1][2].

• Index Performance
  : The Electronics Industry Index (CITIC) rose
  44.67%
  from the start of the year to December 5, outperforming the CSI 300 (+20.00%) [1]
• Driving Factors
  : Driven by the wave of open-source model innovation led by DeepSeek, the domestic large AI model industry underwent revaluation [1]
• Memory Cycle
  : Starting from 2H25, the memory sector entered a price hike cycle amid supply-demand imbalance [1]

• In Q3 2025, funds held a total market value of
  9,370.88 billion RMB
  in the electronics industry, accounting for
  5.07%
  of the tradable A-share market value [1]
• Top 10 held companies: Molnar Optics, Montage Technology, Yuanjie Technology, CASI-TEST, Amlogic, SMIC, AMEC, GigaDevice, RYMC, SmartSens [1]
• High-quality companies in core semiconductor sectors benefited from the resonance of AI innovation cycle and domestic substitution industry cycle [1]

• WSTS forecasts that memory sales will grow by
  28%
  in 2025, with a year-on-year increase of
  over 30%
  in 2026 [3]
• Driving Factors: Strong demand from AI and data centers; geopolitical factors prompting China to expand its independent core supply system [3]

• Amid overseas restrictions, domestic substitution of semiconductor equipment and AI chips is an irresistible trend [2]
• Domestic chip manufacturers have explored solutions such as super nodes, compensating for the performance disadvantage of single cards with the advantage of multi-card quantity [2]
• Multi-card cluster construction has higher requirements for the quantity and quality of components, bringing greater investment opportunities [2]

• SMIC and Vanguard International have taken the lead in raising prices by approximately
  10%
  for their 8-inch BCD process platforms [3]
• In 2025, SMIC, Hua Hong Group and others maintained high capacity utilization rates [3]
• The price hike of BCD process may drive up prices of processes such as high-voltage CMOS [3]

• Prices of DDR4, DDR5 and modules have risen for consecutive days, and the NAND Flash spot market is bullish [3]
• Kingston has significantly raised DRAM prices, and there are no signs of weakness in overall spot prices [3]
• The memory industry will split into a dual-track market of “AI-grade” and “consumer-grade” in the future, with the price gap widening [3]

• Qualitative Change in Industry Positioning
  : From “component carrier” to a core constraining factor that determines the efficiency of computing power release [4]
• Technological path is evolving in depth towards semiconductor-like processes and modularization [4]
• The value volume of single products driven by AI has achieved
  10x growth
  compared to traditional scenarios [4]
• In 2025, industry orders were in a booming state of
  full saturation
  [4]

• As chip power consumption upgrades, the value volume of supporting segments such as liquid cooling and power management will increase significantly [5]
• Delivery capacity of leading optical module manufacturers will become a key to growth [2]
• Pay attention to sub-sectors such as optical chips, OCS, hollow-core optical fibers, liquid cooling, and power supplies [2]

• As an investment sub-theme, there is expected to be a boom reversal opportunity in
  Q2 2026
• Currently in an inventory adjustment period, with demand gradually stabilizing
• Focus on incremental opportunities brought by the increasing penetration of innovative products such as AI smartphones and AI PCs
• It is recommended to gradually lay out positions around Q1 2026 and wait for the confirmation of earnings inflection point

1. Macroeconomic Risk
   : Downward pressure on the global macroeconomy may impact semiconductor demand
2. Policy Risk
   : Changes in international trade policies may affect the progress of domestic substitution
3. Technological Risk
   : Changes in technological routes may affect the competitiveness of some companies
4. Valuation Risk
   : Some companies have relatively high valuations; attention should be paid to pullback risks
5. Competition Risk
   : Intensified competition in the domestic GPU track may affect profit expectations

The resonance between surging domestic computing power, accelerated semiconductor equipment volume growth, and growing demand for AI computing power will profoundly reshape the investment landscape of the electronics industry in 2025-2026. The two main themes of Independent Controllability and AI Computing Power form a dual-driver, with sub-sectors such as semiconductor equipment, memory, and PCB exhibiting high-certainty boom trends.

• Core Allocation
  : Leading semiconductor equipment companies (AMEC, NAURA Technology) and leading wafer foundry (SMIC)
• Elastic Allocation
  : Memory chips (GigaDevice, BIWIN Storage) and leading PCB companies (WUS, Shiyun Circuit)
• Long-term Layout
  : AI chip track (Cambricon Technologies, Hygon Information)
• Inflection Point Layout
  : Pay attention to inflection point opportunities in consumer electronics around Q2 2026

[1] Dongxing Securities - 2026 Annual Strategy for Electronics Industry: Tapping into AI Innovation Cycle (December 2025)
https://pdf.dfcfw.com/pdf/H301_AP202512171802307018_1.pdf

[2] Securities Times - Institutions: Domestic Computing Power Boasts Both Earnings Elasticity and Investment Certainty in 2026 (January 13, 2026)
https://www.stcn.com/article/detail/3588592.html

[3] STAR Market Daily - AI-Driven Structural Transition of Semiconductor Industry: How Will the Market Evolve in 2026? (December 31, 2025)
https://www.eet-china.com/mp/a464354.html

[4] Securities Times - Moore Threads and Cambricon Have a Combined Market Cap of 1.1 Trillion RMB: How to Invest in Technology and High-End Manufacturing?
https://www.stcn.com/article/detail/3549416.html

[5] Securities Times - Institutions: Bullish on Investment Opportunities in Computing Power Industry Chain (December 29, 2025)
https://www.stcn.com/article/detail/3561660.html

[6] Jinling API - Company Profiles and Real-time Quotes of AMEC (688012.SS) and SMIC (688981.SS)

[7] Jinling API - Financial Analysis Report of AMEC (688012.SS)