AI TRENDS | CITIC Securities Highlights Strong Performance in Tech Sector

CITIC Securities released a report on May 8, noting a robust recovery in the technology sector in April, with hardware outperforming software and AI computing power chains leading the way. According to Jin10, the report anticipates that from May to June, models will enter a new phase of weekly iterations, with major model companies expected to release significant updates by mid-year, accelerating commercialization into a positive cycle. The report suggests maintaining focus on four key technology trends: 1) domestic large model companies entering a version iteration window with rapidly increasing ARR; 2) semiconductor equipment companies benefiting from the expansion of domestic memory and advanced processes, with a rising localization rate; 3) leading optical communication companies with high performance certainty and supply capabilities, alongside optical chip companies facing supply constraints and price increase expectations; 4) upstream computing power chain segments with increasing AI exposure, such as MLCC, analog, electronic cloth, and CCL. Additionally, the report highlights the potential for growth in autonomous driving and humanoid robots, awaiting further catalysts.