What else can be bought besides computing power? Top ten securities firms' strategies are here.

This week, the A-share market fluctuated and moved up, with major broad-based indices rising across the board. The overall A-share index rose by 3.09%, with the BSE 50, ChiNext 50, and CSI 1000 leading the gains, rising by 7.99%, 4.42%, and 4.29% respectively. In terms of industries, the top three performing industries were communications, electronics, and mechanical equipment. The top losers were petroleum and petrochemicals, coal, and banks. How will the market evolve in the future? Let's take a look at the latest strategies of the top ten securities firms. CITIC SEC: Actively reducing volatility, waiting for talks and Trump's visit As the Iran-U.S. talks and Trump's visit to China draw closer, the supply and demand analysis becomes more "limping," with macro assumptions temporarily absent. Macro speculative funds will temporarily recede, potential entrants will be on the sidelines, and position-type funds will reduce positions at high levels. The high-sell-low characteristics of the existing funds will be more pronounced, as low-level increases are behavioral results rather than signals. The Iran-U.S. talks and Trump's visit to China are events where the wind bias tends towards the peak. Given the continued strengthening trend in the current structure of the market, it is better to actively reduce volatility. Although the short-term rhythm is becoming more complex, we believe that in the mid-term, AI and chemicals will remain the main sources of supply and demand gaps. This year's AI + chemicals is equivalent to the AI + dividend of 2023-2024, and the AI + resources of 2025. CMSC: In the short term, domestic computing power has the strongest resilience, while overseas computing power infrastructure has stronger certainty in the medium term, and the lithium battery industry is in a phase of prosperity recovery. Recently, the industries of overseas computing power, domestic computing power, and lithium batteries have shown strong industrial prosperity. With regards to investment, domestic computing power has the strongest short-term resilience, while overseas computing power infrastructure has stronger certainty in the medium term, and the lithium battery industry is in a phase of prosperity recovery. In addition, the disclosure of first-quarter results further validates the overall positive trend in A-share performance and the preliminary expansion on the supply side, with A-shares transitioning from liquidity-driven and theme-based investing to performance validation. The areas showing high growth in annual and first-quarter reports are mainly concentrated in high-demand AI sectors, some export advantage manufacturing sectors, and rising resource sectors. Tianfeng: The tech sector continues to focus on growth, with a focus on communications, electronic, and computer core sectors In the past week, the strong performance of the technology sector has continued, with communications, electronics, and computers maintaining their positions in the top three rotating industries. The major broad-based indices continue to maintain an overall bullish view. In terms of operations, it is recommended to maintain a relatively high equity position, with a focus on the growth of technology sectors, focusing on communications, electronics, and computer core sectors, while also paying attention to opportunities in the non-ferrous metal, and defense industries. At the index level, the focus should continue to be on the ChiNext 50 and SSE STAR Market. Founder: Before Trump's mid-May visit to China, it is a relatively sure long window The performance of various assets during the May Day period can be summarized as follows: AI remains an important theme, with assets with higher concentration of AI performing better. The fatigue of the US-Iran conflict is gradually setting in, and Trump's visit to China in May will be an important focus. Domestic demand data remains uneven, with good prospects for rail travel and long-distance tourism, while movies and civil aviation have shown weaker performance. In a typical bull market phase, the adjustment period spans about a month, with a recovery to new highs taking 2-3 months. In the current context, the performance of listed companies in the first quarter has significantly improved, the end of April political meeting was oriented towards lightening up the total volume and focusing on restructuring, and before Trump's mid-May visit to China, the market might be proactive, making it a relatively certain long window. Additionally, as May enters a period with no earnings announcements, thematic stocks are expected to enter a phase of favorable trends, with a focus on thematic directions such as electric-to-electric collaboration, commercial aerospace, and Siasun Robot & Automation that resonate with policies and news. China Galaxy: The market may face a pattern of shaking and increased differentiation in the short term In the short term, the US-Iran conflict still poses intermittent disturbances, but the market sensitivity to external conflict events has weakened, with the impact becoming less severe. The upcoming Trump visit to China, the change in Fed Chair, and other external events will become focal points for the market. The structural highlights in the domestic fundamentals remain strong, providing support for an upward trend in the market. As the Shanghai Composite Index approaches 4200 points, the market may face a pattern of shaking and increased differentiation in the short term. The overall upward trend remains unchanged, with a focus on internal rotation and structural market conditions. The recommendation remains on focusing on key opportunities and structural placements. Soochow: Focus on sectors where prosperity has improved or has the potential for further improvement With the landing of Sino-US financial reports, the short-term odds for the computing power theme are narrowing, and the market may witness structural (rather than systematic) rotations. While maintaining a core position in computing power, it may be appropriate to consider other opportunities, including: Identifying sectors where prosperity has improved or has the potential for further improvement, including but not limited to AI infrastructure, machine tools/general automation, simulation chips, and software sectors impacted by the "HALO" trading anomaly (such as AI cartoons). Within the technology sector, focusing on directions with a lightweight chip strategy and high short-term catalytic density, such as commercial aerospace and Siasun Robot & Automation. If there are clear turning points in the US-Iran conflict and in the Strait, sectors in the part that has been most affected by oil prices and liquidity shocks since March, but with relatively solid fundamentals, such as segments of non-ferrous metals, may show good recovery potential. Huajin Securities: The market is not yet done, technology growth remains advantageous Looking ahead, technology and cyclical industries may continue to have an advantage in May and June. (1) Technology and cyclical industries with policy support and upward industry trends may continue to have an advantage in May and June: Firstly, in the short term, the AI industry trend is likely to continue to rise, with the highest prosperity likely in AI hardware. Additionally, the short-term prosperity of domestic computing power, Siasun Robot & Automation, and AI applications may also continue to rise. Secondly, industries such as gas turbines, lithium batteries, and energy storage may continue to have high short-term prosperity. Finally, technology and cyclical industries may continue to benefit from policy support in the short term. (2) Some blue-chip industries such as non-bank financials and food and beverage may experience a phase of catch-up in May and June: Firstly, blue-chip industries with significant stagnation in previous price increases since April 7 include food and beverage, banks, and pharmaceuticals. Secondly, the current valuations and sentiments in blue-chip industries are relatively low. Thirdly, some blue-chip industries may see marginal improvement in their fundamentals in the short term. Sinolink: Focus on change, identify opportunities beyond AI Currently, the overall valuation of the technology sector is still below the peak of September last year, so the market is still in a phase of "industry focus, stock diffusion". Looking ahead, as new market spaces and order transactions created by technological iterations are completed, the "energy bottleneck" will once again become a focus of attention. Aside from that, there are emerging forces outside of AI that are gaining strength, with the transition of PPI from negative to positive indicating an important change in the supply-demand relationship, and industries in the midstream and downstream reaching the bottom of their capacity and inventory cycles awaiting a boost in demand. Our recommendations are as follows: Firstly, sectors that could benefit from the increased certainty of energy price centers, such as traditional and new energy (oil, oil transport, coal, lithium batteries, wind, solar, energy storage), and the chemical industry with clear cost and capacity advantages globally. Secondly, sectors that have reached the bottom of their capacity cycles, such as commercial vehicles, grid equipment, textile manufacturing, and electronic chemicals, are expected to experience high elasticity as global industrial demand recovers. Additionally, with the gradual retreat of the US dollar's suppression, industrial metals still have room for recovery (aluminum, copper). Thirdly, sectors that have reached the bottom of their inventory cycles, such as consumer sub-sectors that have seen profit growth stages due to the transition from external demand to internal demand - household appliances, personal care products, entertainment products, food, and e-commerce. EB SECURITIES: A-share market is expected to continue a strong and fluctuating trend in May Currently, domestic policies continue to support the economy, core industrial prosperity remains high, and with the market still in an upward cycle, the summer market possesses relatively strong resilience. Overall, the A-share market is expected to continue a strong and fluctuating trend in May, with minor fluctuations expected due to previous accumulated gains, but unlikely to change the core trend of the market in the medium term. In terms of allocation, it is advisable to focus on two main directions: Firstly, the technology growth sector, supported by policies and upward industry trends, including AI hardware, semiconductors, optical communication, energy storage, commercial aerospace, and Siasun Robot & Automation, as these areas have relatively strong fundamental support and business performance. Secondly, companies benefiting from high export prosperity in cyclical and manufacturing sectors, including non-ferrous metals, high-end chemicals, and automotive components. GF SECURITIES: This year's industry allocation favors the Three Betas - AI, Energy Storage, and Offshore Wind From the first-quarter report, the recovery to expansion-phase industries are distributed in three betas and six industry chains: AI (USA/China), energy storage (China/ Europe and Australia), and offshore wind (Europe/China). We believe constructing a portfolio around these three betas can be a strategy for this year, combining business prosperity and reversal strategies to maximize sharpness while controlling volatility. 1. Prosperity strategy: The key points in the AI chain are: Profits are shifting to upstream; Consider the extent to which valuations are overstretched. Among them, 2027's earnings have not yet been fully utilized: copper foil, some semiconductor backend equipment, and optical modules. 2. Prosperity strategy: Lithium batteries continue, with a focus on recommending lithium batteries, which have had a smooth reversal since Q3 2025 and are expected to follow the script of wind power last year, with high odds and good prospects currently. Lithium batteries are similar to last year's wind power industry chain - with increased demand at the end, the industry chain recovers in order, and stock prices are expected to follow the medium-term trend. In addition, when priced in 2027, the lithium battery chain still has room from 2026, with favorable odds and good prospects. Focus on sectors where the supply has not expanded but continued to shrink, with industrial utilization rates bottoming out and valuations or fund chips at low levels - such as hexafluoride, electrolyte additives solvents, separators, copper foils, lithium battery equipment, and lithium ore. 3. Prosperity strategy: For the European offshore wind export chain with increased overseas penetration and higher overseas margins, benefiting from robust supply and demand. However, the valuation aspect may not compare favorably with lithium batteries. The 2027 valuation for the European offshore wind export chain still has room, with some sub-sectors clearing out fund chips. Focus on export-related segments such as tower piles, castings, and cables. This article is reproduced from "Cai Lianshe"; GMTEight Editor: Huang Xiaodong.