Domestic and foreign funds continue to flow in, and the A-share semiconductor sector is favored

Since the beginning of the year, the surge in AI demand has driven up global storage prices. Coupled with the continuous efforts of domestic policies, the A-share semiconductor sector has seen a significant rise in tandem with the U.S. stock market, with domestic and foreign funds actively positioning through ETFs. However, as the sector has accumulated substantial gains, volatility has also intensified. At this point, institutions believe that although the semiconductor sector's short-term valuation is at a high level and faces adjustment pressure, from a medium to long-term perspective, the global technology wave led by artificial intelligence (AI) is pushing the industry into a new growth cycle. Against the backdrop of accelerated localization processes and gradually optimized supply-demand dynamics in the industry, companies with core technologies and ecological barriers are expected to continue benefiting, and the long-term growth logic of the sector remains clear. (Shanghai Securities Journal)