The essence of the securities firm's morning meeting | Discussion on whether the high-growth trend of AI-related investments will continue, may be premature to declare it "falsified"

The market saw a decrease in volume and adjustment yesterday, with the ChiNext Index falling by nearly 2%. Volume continued to shrink, with the trading volume of the Shanghai and Shenzhen stock markets falling below 2 trillion, a decrease of 191.4 billion compared to the previous trading day. In terms of sectors, the Fujian Free Trade Zone, banks, and the ice and snow industry led the gains, while precious metals, pharmaceuticals, Siasun Robot&Automation, and other sectors were among the top losers. As of the closing yesterday, the Shanghai Composite Index fell by 0.41%, the Shenzhen Component Index fell by 1.71%, and the ChiNext Index fell by 1.96%. At the brokerage morning meeting today, China Securities Co., Ltd. pointed out that institutional holdings in the communication industry reached a new high in the third quarter, and continued to recommend the AI computing power sector; Huatai stated that the high-growth trend in AI-related investments may continue, and discussing whether it is "falsified" may be premature; CITIC SEC believes that the supply-demand gap is expected to widen, and copper prices are expected to reach new highs in 2026. China Securities Co., Ltd.: Institutional holdings in the communication industry reached a new high in the third quarter, continue to recommend the AI computing power sector China Securities Co., Ltd. released a summary report of the third-quarter report on the communication industry, stating that in the third quarter of 2025, the revenue and net profit growth rates of the communication sector both increased month on month, with the AI computing power sector performing well. The market value of communication industry holdings by public funds and northbound funds reached 6.87% and 2.82% respectively, both hitting historical highs. The current Shanghai communication PE-TTM is 43.41, in the 96.53% percentile over the past 5 years and the 67.26% percentile over the past 10 years. Although there was some adjustment in the sector after the third-quarter report was released, the AI computing power sector is still recommended, including core companies in the North American and domestic computing power industry chains. In addition, it is suggested to focus on the AI application sector, including the progress of edge AI, as well as the submarine cable and optical fiber cable sectors with no significant increase in the previous period and the potential for improvement in the future, the military communication sector, and the quantum technology sector that both domestic and foreign giants are increasingly investing in. Huatai: The high-growth trend in AI-related investments may continue, it may be premature to discuss whether it is "falsified" Huatai stated that considering the longer investment cycle of AI, the high-growth trend in AI-related investments may continue, and it may be premature to discuss whether it is "falsified." Currently, the investment growth in the AI field is fast, and the valuations of related companies are relatively high. However, judging whether there is a bubble is still premature from the perspective of development stages. If the trend continues, over time, this new technological field may attract more financial resources and eventually lead to valuation "bubble." On the other hand, considering the current continuous realization of profits, relatively ample liquidity, and the tense supply-demand situation, there are currently no macro conditions that trigger drastic adjustments in financial market expectations in the traditional sense. CITIC SEC: The supply-demand gap is expected to widen, copper prices are expected to reach new highs in 2026 CITIC SEC believes that against the backdrop of successive significant disruptions in existing projects and bottlenecks in new projects, the global major copper mining companies' production in the third quarter of 2025 decreased by nearly 5% year on year, while the fourth quarter is expected to continue to shrink. The shortage of raw materials and potential "anti-inner circle" will help shrink the supply of refined copper in the fourth quarter, coupled with stable demand, domestic stocks are expected to gradually deplete. The low supply and robust demand next year will help widen the global refined copper supply gap by 50%, and LME copper prices are expected to fully demonstrate upward elasticity above $10,000 per ton. It is recommended to seize the opportunity to allocate to the copper sector. This article is reprinted from "Cai Lianshe", GMTEight Editor: Jiang Yuanhua.