Highlights of the securities morning meeting | Growth-driven but cautious about chasing highs. Positive changes are needed for the non-AI sector to rise.

Last Friday, the three major indexes fluctuated, with the ChiNext Index and the Shenzhen Component Index rebounding, while the Sci-Tech Innovation 50 Index rose by 3.84%. Zhongji Innolight's total market value surpassed Kweichow Moutai. The trading volume in the Shanghai and Shenzhen markets reached 3.31 trillion yuan. In terms of sectors, the chip industry chain, CPO, PCB, and innovative drugs were active. On the downside, the power and large financial sectors weakened. By the close, the Shanghai Composite Index fell by 0.43%, the Shenzhen Component Index rose by 0.94%, and the ChiNext Index rose by 2.05%. At the securities morning meeting today, CITIC SEC stated that the non-AI sector needs to see some positive changes in its narrative in order to rise. Huatai believes that growth is leading but caution should be exercised in chasing highs. Guotou Securities believes that the current AI technology trend will not end easily. CITIC SEC: The non-AI sector needs to see some positive changes in its narrative in order to rise The market driven by AI since the beginning of this year is a "bottleneck trade" driven by massive infrastructure investment, more similar to the bull market driven by investment and heavy asset companies in 2006-07, rather than the internet bubble market. It is difficult for interest rate hikes to affect the valuation of "AI cyclical stocks" unless interest rate hikes truly affect AI's end demand, commercialization assumptions, and capital expenditure growth rates. Around the world, the interest rate hike process first affects sectors with relatively weak demand growth, and the K-shaped differentiation between AI and non-AI is established globally. However, due to the return of the strong US dollar narrative and the structural adjustment of stock funds in the market, the A-share non-AI cyclical sector is significantly weaker compared to overseas benchmark companies. Although there is also a K-shaped differentiation, the breadth of the A-share market is relatively insufficient compared to overseas markets. Changing the weakness of the non-AI sector requires some positive changes in its narrative in the future, or changes in the funding situation, rather than waiting for AI adjustments. Huatai: Growth is leading but caution should be exercised in chasing highs Last week, the center of gravity of A-shares moved up, with growth leading the way, and the AI industry chain experienced an ultimate rally under policy catalysis, but the apparent crowding is at a high level. The short-term continuation of the K-shaped recovery opens up expectations for policy reinforcement in weak areas such as domestic demand. The resonance of the AI industry cycle is still strong, and the market trend may not collapse, but the market sentiment has not fully retreated, lacks hedging, and vulnerability is accumulating. In terms of pace, it is recommended to moderately control positions and not chase highs, leaving sufficient safety cushions. In terms of allocation, focus on three clues: first, the performance visibility of the AI hardware chain and the price hike chain is high, focusing on optical modules, storage/CCL, MLCC, MPO, etc. Second, varieties that show dual improvements in supply and demand from a financial report perspective, focusing on consumer electronics, minor metals, decoration materials, etc. Third, continue to focus on sectors with stable shareholder returns and defensive attributes to hedge against the fluctuation risks of technology trading. Guotou Securities: The current AI technology trend will not end easily At the same time, all trends are group hugging, and it is worth noting that when the group hugging of the Ma Index and Ning Combination truly collapses, the A-share high-cut low index is more than 90%, and the situation of group hugging and differentiation is more severe than the current situation. The overall macro gray rhinoceros is not clear (1. Overseas liquidity tightening; 2. Domestic regulatory attitudes) and the high level of AI capital expenditure is difficult to falsify, the current round of AI technology group hugging will not end easily, the core main line positioning has not been shaken by the high volatility of stock prices, and the last frenzy is the most crazy, the first peak of the M-top has not yet been seen. This article is reproduced from "Cailianshe", GMTEight editor: Chen Siyu.