The technology sector has encountered a deep adjustment, and institutions suggest focusing on leading companies in specific segments.

On July 2nd, the A-share market experienced a significant adjustment, with the previously strong leading technology sector taking the brunt of the impact. Hot sectors such as semiconductors, storage chips, and communication equipment all faced a collective decline. Analysts believe that this round of adjustment is not a reversal of fundamental logic, but rather a concentration of risks such as crowded trading and fragile chip structures in a market that saw extreme differentiation in the technology sector in the first half of the year. After experiencing a significant increase in the first half of the year, some high-priced varieties have been overvalued and overdrawn. A short-term correction is considered reasonable. However, from a medium to long-term perspective, the trend in the AI industry has not changed. Institutions generally recommend that investors maintain their composure during the adjustment process, focus on leading companies with core competitiveness in specific sectors, and appropriately allocate high dividend assets to smoothen portfolio volatility.