Zhongtai: The better-than-expected catalyst of the first quarter report of science and technology, the logic of mapping technology between China and the United States will be further strengthened. It is recommended to firmly embrace the technology main line.

Zhongtai released a research report stating that the recent market trend continuously confirms the technology theme. As May approaches, the focus has shifted from the US-Iran tensions to the meeting between the US and Chinese leaders. The strong first-quarter reports in the technology sector, along with the mapping logic of Sino-US technology, will be further strengthened. It is recommended to firmly grasp the technology theme. Key points include: Key Theme 1: The AI hardware industry chain with strong capital expenditure to maintain high prosperity. Key Theme 2: The industry chain extension benefiting from the expansion of AI demand. Zhongtai's main points are as follows: Before and after the May Day holiday, there were successive outbreaks in US-China technology, with A-shares accelerating the launch of domestic computing power, and US stocks rising from storage to CPU. Technology giants' financial reports greatly exceed expectations, coupled with the approaching time of the meeting between the US and China's leaders, the warming wind bias has once again driven technology to become the strongest theme. Funds that exited the market due to risk aversion driven by the US-Iran situation have been returning since April. With the filling of valleys before creating peaks, wealth management is becoming a new marginal increase. From residents to corporate wealth management, the wealth management in April showed super seasonal growth. Emotional indicators show that the technology sector is still at a moderately warm level, which is a precursor to the new round of the main uptrend. Previously, the technology sector was approaching "extreme greed" on April 22, and then fell back to the neutral warm zone. After emotional clearance, it is often the eve of a new start. The resonance of fundamentals and emotions is a sufficient condition for the start of the market. When the market hesitates, technology begins to shine. At the time of the greatest market divergence, a firm recommendation for the AI chain, from light modules to domestic computing power. The recent market trend continuously confirms the technology theme. As May approaches, the focus shifts from the US-Iran tensions to the meeting between the US and Chinese leaders, the strong first-quarter reports in the technology sector, the logic of Sino-US technology mapping will be further strengthened. It is recommended to firmly grasp the technology theme. Key points include: Key Theme 1: The AI hardware industry chain with strong capital expenditure to maintain a high level of prosperity. In the backdrop of the ongoing global AI arms race, China's AI hardware supply chain directly receives overseas capital expenditure increment. It is recommended to focus on light modules, light chips, AI servers, advanced packaging, with a clear mapping logic and abundant upward momentum for repair. Key Theme 2: The industry chain extension benefiting from the expansion of AI demand. The continuous expansion of computing power infrastructure drives simultaneous benefits for upstream and downstream, and it is recommended to focus on liquid cooling, computing power leasing, energy storage, grid equipment, semiconductor materials, etc. The logic of fundamental improvement is clear, and is expected to benefit synchronously along with the main theme. Risk Warning: US-Iran conflict evolves beyond expectations, the Federal Reserve tightens monetary policy beyond expectations, US-China talks fall below expectations, information updates are not timely, etc.