The recent performance of the A-share market has been characterized by wide fluctuations and increasing divergence. The technology sector, which had been on a sustained upward trend, is undergoing a phase of adjustment, with significant pullbacks observed in popular industries such as semiconductors, optical communications, PCBs, and memory. Conversely, previously undervalued sectors like pharmaceuticals have shown relative strength. Looking ahead, what can we expect from the market, and which specific opportunities deserve attention? As the Q2 2026 fund reports are being released, they may offer some investment insights regarding the market's future direction and potential opportunities that investors are concerned about. Let's examine the latest analysis from Yang Weiwei, the fund manager of the Great Wall Semiconductor Industry Mixed Fund.

In the Q2 2026 report for the Great Wall Semiconductor Industry Mixed Fund, Yang Weiwei noted that the CSI All Share Semiconductor Index posted substantial gains during the quarter. The segments that delivered significant outperformance were memory, along with the related equipment and materials supporting memory capacity expansion. Domestic computing power and analog chips also performed well.

Looking forward, Yang Weiwei believes that the expansion theme remains compelling. AI is driving demand across the entire semiconductor industry chain, including analog, power, and memory, with memory particularly entering a historically strong cyclical upswing. Consequently, equipment, materials, and components related to subsequent capacity expansions are expected to continue benefiting. Regarding domestic computing power, the leapfrog improvements in the coding and agent capabilities of overseas large language models (LLMs) are gradually establishing them as new productivity tools. The catch-up efforts by domestic LLMs are far from reaching their potential in driving demand for domestic computing power. Simultaneously, with the ongoing iteration and upgrades of domestic computing cards, their cost-performance ratio is becoming increasingly attractive, making market-driven volume growth an inevitable trend. He emphasized that his current primary areas of optimism include domestic computing power, as well as semiconductor materials, equipment, and components that stand to benefit from wafer fabrication plant expansions.