Bank of America: Strong semiconductor performance drives growth funds to outperform the market; actively managed funds performed exceptionally well in June.
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Multiple Wall Street firms are collectively advocating for "buying on dips" in the semiconductor sector: the long-term logic of AI remains unchanged, but investment is entering an era of selective buying.
According to Mars Finance, on July 7th, amidst the recent continuous correction in the semiconductor sector, several Wall Street institutions have voiced their opinions, generally believing that the current adjustment presents an opportunity for investors to "buy on dips." However, unlike past recommendations to allocate across the entire semiconductor sector, institutions generally believe that AI investment has entered a phase of selective stock picking. Goldman Sachs stated that AI chip trading has entered a more selective phase, and does not recommend continuing to "buy a basket" of semiconductor stocks. They remain optimistic about specific sub-sectors such as CPUs, ASICs, memory, and semiconductor equipment, specifically highlighting AMD and Applied Materials. JPMorgan Chase believes that the recent correction in semiconductor stocks presents a good entry window, as AI chip demand remains in a long-term upward cycle, with new capacity not expected to be significantly released until around 2028, and the industry's supply and demand structure remains healthy. Bank of America maintains its optimistic outlook on the long-term boom cycle of AI semiconductors, believing the industry is still in the middle of an 8- to 10-year growth cycle, and the global semiconductor market size is expected to continue to expand. They recommend focusing on industry leaders such as Nvidia, Broadcom, Lam Research, and KLA. UBS stated that the long-term investment logic for AI remains unchanged, and the short-term fluctuations in the semiconductor sector actually provide long-term investors with opportunities to gradually build positions. They recommend taking advantage of market corrections to buy on dips. Morgan Stanley believes that the long-term prospects for AI chips remain positive, but with the sector's significant rise, the market will focus more on earnings realization capabilities. Funds may gradually rotate from some chip stocks to AI infrastructure beneficiaries such as cloud computing, and investors should pay more attention to individual stock selection. Overall, several Wall Street institutions, including Goldman Sachs, JPMorgan Chase, Bank of America, and UBS, have recently released similar signals: the semiconductor correction is not the end of the AI rally, but rather provides a new window for investment. However, the market has moved from a phase of "broad-based sector gains" to one of "selecting leading companies," and future performance will depend more on companies' earnings realization capabilities and the sustainability of demand for AI infrastructure.
World Bank: China's economic growth remains resilient
According to Mars Finance, the World Bank released its latest China Economic Brief in Beijing on July 7. The report states that despite facing strong supply and weak demand, as well as global energy supply shocks, China's economic growth has remained generally resilient. The report shows that in the first five months of this year, driven by strong domestic and international demand related to artificial intelligence, investment in China's high-tech industries increased by 4.5% year-on-year. From the export side, strong external demand for China's technology-intensive products supported robust export performance. At the same time, China's technology-related imports expanded significantly, reflecting accelerated capital expenditure related to artificial intelligence and increased demand for components needed for technology-intensive export production. The report believes that despite facing global energy supply shocks, China has effectively mitigated the impact on the economy by relying on diversified energy import sources, a high proportion of renewable energy, and temporary retail controls on refined oil products. The report states that in the medium term, coordinated structural reforms, such as local government debt reduction and the removal of hidden barriers to the private sector, will help address insufficient domestic demand and accelerate the economic rebalancing process. Reducing employment and skills mismatches will help workers better access job opportunities and further support China's economic transformation. (Cailian Press)
Everbright Securities: The semiconductor and AI wave is driving fluorine-containing new materials into a period of rapid growth.
According to a research report by Everbright Securities, leading domestic fluorochemical companies are accelerating their development of fluorine-containing new materials, focusing on creating a second growth curve. In the semiconductor field, high-purity (e.g., G5 grade) electronic-grade hydrofluoric acid, an indispensable key wet electronic chemical in chip manufacturing, has long been monopolized by Japanese and American companies. In recent years, domestic companies have leveraged their integrated industrial chain advantages to overcome the bottleneck of ultra-clean high-purity processes. Electronic-grade hydrofluoric acid has successfully passed the stringent certifications of leading domestic and international wafer foundries and entered a stage of large-scale production. Simultaneously, the rapid increase in computing power from AI, HPC, and hyperscale data centers has led to a continuous increase in the heat density of data centers. Traditional air-cooling solutions are gradually becoming insufficient to meet the demands of high-power-density scenarios, and liquid cooling is becoming the essential solution for efficient heat dissipation. Fluorochemical companies are adapting to the trend of efficient heat dissipation and actively developing high-performance fluorine-containing coolants such as perfluoropolyether (PFPE). With their insulating, non-flammable, and excellent thermal management properties, they occupy an irreplaceable position in high-safety, high-power scenarios such as immersion liquid cooling. Fluorine-containing new materials are driving fluorochemical companies towards a deep transformation towards high-tech barriers and high added value. (Cailian Press)
US stocks saw the Nasdaq under pressure in overnight trading, but the semiconductor and memory sectors rebounded strongly, with memory chains leading the gains among tech stocks.
According to Mars Finance, on July 6th, based on BIT (bit.com) market data, the three major US stock indices diverged in overnight trading. The Dow Jones Industrial Average rose 1.14%, the S&P 500 was essentially flat, and the Nasdaq Composite fell 0.8%. Market structure indicates that funds continued to rebalance within growth stocks, with traditional heavyweights and value sectors showing relative strength. Within the technology sector, however, divergence and volatility were observed, although the semiconductor and memory sectors clearly exhibited independent rebounds, driven by the need for valuation repair after previous corrections. NVIDIA (NVDA) rose 0.17%, TSMC (TSM) rose 2.11%, Marvell Technology (MRVL) rose 1.94%, Seagate Technology (STX) rose 3.39%, Western Digital (WDC) rose 4.91%, SanDisk (SNDK) rose 5.85%, and Micron Technology (MU) rose 4.36%.
The People's Bank of China: We will continue to implement a moderately loose monetary policy and increase counter-cyclical and cross-cyclical adjustments.
According to BlockBeats, on July 8th, the Monetary Policy Committee of the People's Bank of China held its second quarterly meeting of 2026. The meeting analyzed the domestic and international economic and financial situation, concluding that the current external environment is more complex and volatile, with weak global economic growth momentum, frequent geopolitical conflicts and trade frictions, divergent economic performance among major economies, and uncertainties surrounding inflation trends and monetary policy adjustments. While my country's economy is generally stable and moving towards new and improved directions, achieving new results in high-quality development, it still faces problems and challenges such as strong supply and weak demand, structural differentiation, and external shocks. The meeting stressed the need to continue implementing a moderately loose monetary policy, increase counter-cyclical and cross-cyclical adjustments, better leverage the dual functions of monetary policy tools in terms of both aggregate and structural aspects, strengthen the coordination of monetary and fiscal policies, and promote stable economic growth and a reasonable recovery in prices.
Morgan Stanley's Chief Economist for China, Xing Ziqiang: New-type productivity leads to strong export growth
According to Mars Finance, Xing Ziqiang, Chief Economist for China at Morgan Stanley, stated in his keynote speech titled "China's Economy Under the New Cycle of Technology and Energy" that China's economy performed steadily on the supply side in the first half of this year, with new-quality productivity becoming a key force supporting economic growth. From January to May, China's exports of AI-related infrastructure such as integrated circuits, semiconductors, and optical modules increased by 90% year-on-year, reaching over US$130 billion; exports of the "new three" products—electric vehicles, lithium-ion batteries, and solar cells—increased by 50% year-on-year, playing a crucial role in achieving the economic growth target in the first half of the year. (Cailian Press)