Sinolink: The prosperity of computing power hardware continues to be validated, optimistic about AI PCBs and the self-controllable industrial chain.

Sinolink has released a research report indicating a continued optimistic outlook on three main lines: AI computing hardware, semiconductor autonomy, and edge AI innovations. In terms of AI computing, as the new generation of GPUs and ASIC products from companies like Google and Amazon continue to be delivered, demand for AI servers and high-speed switches is expected to maintain rapid growth. The outlook for AI-PCB, steel-covered boards, and the upstream supporting industrial chain remains positive. Regarding semiconductors, domestic advanced logic and storage production lines are continuing to expand, with the substitution of equipment, components, and materials moving forward. At the same time, an upward storage cycle and the increased output of domestic AI computing chips are driving improvements in design sector profitability, with a continued positive outlook for core companies in the autonomous and controllable industrial chain. For edge AI, attention is focused on the new product cycle from Apple, as well as hardware innovations such as AI smart glasses and AIoT that are generating new demand. Sinolink's main viewpoints are as follows: The performance of the electronics industry for the first half of 2026 is expected to grow, with profitability significantly improving. The electronics industry is projected to achieve revenue of 2,449.72 billion yuan in the first half of 2026, a year-on-year increase of 30.98%, with a net profit attributable to shareholders of 173.76 billion yuan, showing a year-on-year growth of 99.38%. In 202602, revenue is expected to reach 1,362.99 billion yuan, increasing by 34.81%, with a net profit attributable to shareholders of 112.30 billion yuan, up by 124.61%. In the first half of the year, the demand for AI cloud computing infrastructure remained robust, with rapid growth in the performance of the AI computing hardware industrial chain: domestic semiconductor autonomy is accelerating, with excellent performance in equipment, computing chips, and the semiconductor design sector. Edge AI is rapidly penetrating the market, and the new product cycle is driving improvements in consumer electronics demand. The gross profit margin for the electronics industry in the first half of 2026 is projected to be 17.5%, approximately +1.8 percentage points year-on-year, with a net profit margin of 7.1%, approximately +2.4 percentage points year-on-year. Product structure optimization and economies of scale are driving continuous improvements in sector profitability. Benefiting from sustained AI computing demand, both volume and price are rising in the PCB sector. The PCB industry is expected to achieve revenue of 186.12 billion yuan in the first half of 2026, a year-on-year increase of 36.48%, with a net profit attributable to shareholders of 21.74 billion yuan, a year-on-year increase of 72.66%. In 202602, revenue is projected to be 103.59 billion yuan, a year-on-year increase of 47.45%, with a net profit attributable to shareholders of 13.72 billion yuan, up by 95.67%. The gross profit margin for the first half of 2026 is projected at 25.3%, with a net profit margin of 11.9%. The continuous growth in AI computing demand, coupled with an increasing share of high-end products, is expected to continue supporting the prosperity of the PCB, steel-covered boards, supporting equipment, electronic fabrics, and copper foil industrial chains. Semiconductor equipment: Domestic substitution continues to advance, further improving profitability. The semiconductor equipment industry is expected to achieve revenue of 55.37 billion yuan in the first half of 2026, up by 26.33%, with a net profit attributable to shareholders of 11.66 billion yuan, an increase of 71.94%. In 202602, revenue is projected to be 29.88 billion yuan, a year-on-year increase of 42.01%, with a net profit attributable to shareholders of 7.22 billion yuan, up by 92.94%. Domestic wafer fabs are maintaining strong capital expenditures, while advanced logic and storage production lines continue to expand. The upgrade of processes is leading to an increase in equipment value, and orders and revenues for domestic equipment manufacturers are experiencing rapid growth. The outlook for the semiconductor equipment and core components in the autonomous and controllable industrial chain remains positive. Storage: The upward cycle is significantly improving profitability elasticity. Revenue for the first half of 2026 is projected at 281.99 billion yuan, representing a year-on-year increase of 389.89%, with a net profit attributable to shareholders of 113.86 billion yuan, a year-on-year increase of 14,912.95%. Of this, revenue in the second quarter of 2026 is expected to reach 177.52 billion yuan, a year-on-year increase of 433.54%, with a net profit attributable to shareholders of 75.36 billion yuan, a year-on-year increase of 17,339.65%. The firm believes that AI computing demand will continue to support high-end storage demands such as HBM and enterprise-grade SSDs, while the supply-demand pattern for traditional DRAM and NAND is expected to remain tight. Semiconductor design: The resonance of AI computing chip volume is releasing significant profitability elasticity. The semiconductor design sector is projected to achieve revenue of 79.72 billion yuan in the first half of 2026, a year-on-year increase of 37.13%, with a net profit attributable to shareholders of 19.22 billion yuan, up by 123.09%. In 202602, revenue is expected to be 45.19 billion yuan, a year-on-year increase of 41.05%, with a net profit of 13.28 billion yuan, an increase of 157.38%. Domestic computing chips are also accelerating in output as large models continue to be generated and demand for training and inference expands. The firm believes AI computing demand growth and domestic substitution will remain important drivers for the semiconductor design sector. Consumer electronics: Edge AI is continuously penetrating the market, and the new product cycle is driving demand improvements. The consumer electronics industry is projected to achieve revenue of 1,184.50 billion yuan in the first half of 2026, representing a year-on-year increase of 34.11%, with a net profit attributable to shareholders of 49.78 billion yuan, a year-on-year increase of 50.96%. In 202602, revenue is expected to reach 643.26 billion yuan, up by 34.46%, with a net profit of 28.78 billion yuan, an increase of 55.13%. In the first half of the year, edge AI is continuously driving software and hardware upgrades for smartphones, AIPCs, and wearable devices, combined with the new product cycle driving improvements in replacement demand, sustaining the sector's prosperity. Looking ahead to the second half of the year and into 2027, hardware innovations, AI smart glasses, and other new edge AI products are expected to continue driving increases in the industrial chain's value. Risk warnings: Risks of terminal demand falling short of expectations; risks of AI technology iterations and commercialization progress falling short of expectations; risks of further escalation in external sanctions; risks of upstream raw material price increases and cost transmission falling short of expectations.