On May 28th, an analysis was provided on the core factors influencing the Federal Reserve's policy path for the second half of the year and the potential trajectory of the technology sectors in the US and Hong Kong stock markets.

The analysis highlighted a significant shift in the cost structure of modern applications. It was pointed out that approximately 70% of the cost in a typical application is now attributed to infrastructure, while the share of software applications and value-added services has decreased from around 70% to about 30%. This indicates that the proportion of computing power within the total cost of application services has more than doubled.

This fundamental change in cost allocation is identified as the primary, long-term driver behind the current upward trend in overseas semiconductor stocks. The analysis further characterized this trend, noting that the ascent is exceptionally steep and is anticipated to persist for a longer duration compared to previous innovation cycles. This phenomenon is described as a "paradigm shift" within the industry.