CICC: Cloud and Edge AI Implementation Marks the Beginning of a New Cycle for Domestication of Semiconductors and Components by 2025

On December 13th, Jin10 Data reported that according to a research report by CICC, the semiconductor and component industry as a whole will be in an upward phase of prosperity in 2024. It is expected that inventory and supply and demand will stabilize in 2025, AI cloud and end demand will land, and domestic factors will usher in a new cycle. It is expected that the AI upgrade cycle in 2025 will accelerate the downstream demand for semiconductor design zones. The demand for Computing Power chips on the cloud and end sides driven by AI is expected to expand. At the individual stock level, we are optimistic about the expansion of product structure and the performance of relevant companies, and suggest to follow the investment opportunities brought by some M&A reorganizations in the industry. It is expected that the supply and demand of chip manufacturing will approach a balance in 2025, and the utilization rate of production capacity will be maintained at a reasonable level. Among them, the research and development of advanced process manufacturing is expected to continue to promote the development of equipment, components, materials and design tools.