CITIC Securities believes that in the latter part of the industrial supercycle, after institutional tickets peak, there is usually a round of new highs for non-institutional tickets. The current AI narrative, the position of the profit cycle, and the global monetary environment can easily restrict institutional tickets: 1) AI computing power investment is not slowing down, but market expectations for commercialization space for cutting-edge model manufacturers are being adjusted; 2) All-A non-financial profits may continue to rise month-on-month in 2026Q3, but the peak of year-on-year growth may occur in the fourth quarter of this year; 3) The Federal Reserve has shown a tough stance of controlling inflation, which will create a tight macro-liquidity atmosphere at least during the year. If you look at these factors from an institutional perspective and thinking, they will undoubtedly limit the height of the market. However, if we take the perspective of short-term sentiment and chip cycles, and add the catalytic effects of the three quarterly reports, the market has the soil for active capital to attack new technologies and new topics. We recommend actively grasping the final offensive window of the year. In terms of configuration, considering the high interest rate environment, within the last wave of attacks in the year, market differentiation may expand again, and AI will once again dominate. Proposals in the field of science and technology focus on two types of directions: the first is new optical communication technology, PCBs, advanced packaging, etc. that benefit from increased manufacturing complexity; the second is wafer manufacturing, gas turbines, etc. with clear incremental logic. Among them, non-institutional heavy stocks may have greater upward flexibility, and the North American chain may have a relative advantage for some time to come; the non-technology sector continues to focus on energy and leading brokerage firms with the potential to go overseas.

CITIC Securities believes that in the latter part of the industrial supercycle, after institutional tickets peak, there is usually a round of new highs for non-institutional tickets. The current AI narrative, the position of the profit cycle, and the global monetary environment can easily restrict institutional tickets: 1) AI computing power investment is not slowing down, but market expectations for commercialization space for cutting-edge model manufacturers are being adjusted; 2) All-A non-financial profits may continue to rise month-on-month in 2026Q3, but the peak of year-on-year growth may occur in the fourth quarter of this year; 3) The Federal Reserve has shown a tough stance of controlling inflation, which will create a tight macro-liquidity atmosphere at least during the year. If you look at these factors from an institutional perspective and thinking, they will undoubtedly limit the height of the market. However, if we take the perspective of short-term sentiment and chip cycles, and add the catalytic effects of the three quarterly reports, the market has the soil for active capital to attack new technologies and new topics. We recommend actively grasping the final offensive window of the year. In terms of configuration, considering the high interest rate environment, within the last wave of attacks in the year, market differentiation may expand again, and AI will once again dominate. Proposals in the field of science and technology focus on two types of directions: the first is new optical communication technology, PCBs, advanced packaging, etc. that benefit from increased manufacturing complexity; the second is wafer manufacturing, gas turbines, etc. with clear incremental logic. Among them, non-institutional heavy stocks may have greater upward flexibility, and the North American chain may have a relative advantage for some time to come; the non-technology sector continues to focus on energy and leading brokerage firms with the potential to go overseas.