On Monday, both exchanges experienced a broad rebound, with technology stocks, which had declined significantly earlier, seeing a considerable recovery. The market's primary focus was on the debut of a major Chinese memory chip giant, which attracted strong capital inflows, reflecting investor optimism toward domestic memory chip leaders.

The listing of this memory chip heavyweight not only provides essential capital for future capacity expansion and increased R&D investment but also enhances its global influence. This is expected to improve its market share in the global memory chip sector and solidify its leading position in DRAM memory, highlighting the rapid development of China's domestic chip industry in recent years.

With the current explosion in AI technology demand, the need for memory chips is robust. As a few international giants concentrate their production capacity on high-end HBM chips for AI data centers, the markets for DRAM memory and NAND Flash have become severely undersupplied, creating corresponding opportunities for domestic memory companies.

In the current environment of a tech bull market, the timing for tech companies to go public is favorable. This will further consolidate their industry positions while providing investors with access to leading stocks in relevant sectors. Prior to the IPO of the flagship company, many investors worried that it would create a capital absorption effect, diverting funds from the chip semiconductor industry and even the entire tech sector, potentially causing further declines in tech stocks.

However, over the past month or so, tech stocks have already experienced a substantial correction. Sectors like chip semiconductors, computing power, and algorithms, which had previously seen significant gains, underwent large-scale profit-taking, effectively pre-pricing the expected capital diversion from the listing. By the time the official listing occurred, the market instead rebounded, confirming the market adage that when bad news is fully priced in, it becomes good news.

During the first half of the year, the market was exceptionally hot, with capital indiscriminately pushing up both fundamentally strong companies and concept stocks, accumulating substantial market risk. Since late May, investors were advised to take profits promptly, avoid chasing highs, and guard against the significant losses from a major pullback. In the subsequent two months, many previously high-flying tech stocks saw sharp declines, with some share prices halving, validating the necessity of the earlier risk warnings.

A three-step strategy was previously proposed to cope with the significant market correction: first, resolutely reduce leverage; second, lower portfolio holdings to around half the position; third, diversify allocations by simultaneously investing in tech and dividend-yielding assets. Strictly executing this strategy could have avoided most of the losses from this round of adjustment.

During periods of market euphoria, investors must curb greed and avoid the risks of chasing highs. Now that tech stocks have completed a substantial correction, investors must also overcome fear and maintain confidence in the future outlook. After this round of adjustment, many high-quality leading companies have completed profit-taking, and their valuations are gradually becoming attractive for investment.

Considering the duration and magnitude of the adjustment, the correction process for most quality tech leaders may be nearing its end, creating favorable conditions for a new market cycle. Against the backdrop of current economic transformation, six major tech tracks will continue to benefit from economic restructuring and the AI technology revolution. Rotation opportunities exist across these tracks, and investors can focus on leading companies within them.

The viewpoint on six major tracks, proposed early last year, has now been preliminarily validated by the market. These six tracks represent core beneficiary directions for the tech industry and are expected to gradually realize their earnings potential. They are: chip semiconductors, computing power and algorithms, humanoid robots, commercial aerospace, solid-state batteries, and biomedicine.

This round of tech market momentum is not a short-term, impulsive rally. Investors should maintain long-term confidence. Going forward, the degree of sector differentiation may become more pronounced: tech leaders that can consistently deliver earnings and secure ongoing orders are likely to reach new highs. In contrast, stocks relying solely on concept hype without substantive earnings support may see their prices never return to previous levels and could experience significant declines.

Adhering to the principle of value investing remains crucial, and this applies equally to tech stock investments.