With third-quarter fund reports now being released, several of the industry's most prominent fund managers have shared their views on where markets are heading, according to a roundup of their latest commentary.
Their remarks point to solid growth momentum in semiconductor equipment, a sector seen as having strong staying power, while AI large-model companies are expected to gradually replace traditional internet firms as the new leaders of the technology industry.
Overseas opportunities for domestic semiconductor equipment makers are seen as broad, with order visibility high across the sector, while quality names in electronics, telecommunications, and power and new energy are viewed as having solid growth logic.
Future market opportunities are expected to become more balanced, with attention likely to focus on areas that have already seen significant corrections, including AI applications, pharmaceuticals, and consumer sectors. Over the medium to long term, resources and technology remain the two most favored main themes.
Where the growth drivers stand
Dongfang Fund's Yan Kai said he is focusing on weak links in the semiconductor and chip supply chain, especially key segments such as semiconductor equipment, materials, and components, noting that these areas not only have high technical barriers and clear competitive advantages but also benefit deeply from national policy support and possess ample growth momentum.
Looking ahead, the fund will continue to closely track the localization progress of the semiconductor industry and seek out long-term investment value and return opportunities embedded in technological innovation.
E Fund's Zheng Xi said the ability of large models to handle complex tasks has expanded significantly, making them effective productivity tools, and that top large-model companies have become new global commercial traffic gateways.
The existing industry built on internet software will face surging demand and industrial restructuring, with AI large-model companies expected to gradually replace traditional internet firms as the new leaders of the technology industry.
Yinhua Fund's Fang Jian said China's high-quality transformation is gradually showing results, the semiconductor rally still has a long way to run, and the sector currently offers relatively good allocation value.
Semiconductors are the backbone of technology stocks, and localization remains one of the most certain investment opportunities in the domestic semiconductor space.
E Fund's Wu Yang said autonomous driving and robotics are two mappings of generative AI into the physical world and will both reach industry growth inflection points, making them growth areas the firm has long favored.
However, robotics is constrained by large-model capabilities and engineering implementation, so investment certainty is not yet high enough and the competitive landscape remains uncertain. By comparison, the investment inflection point for autonomous driving may arrive earlier than for robotics, and the firm will continue to track and study the space while waiting for opportunities.
Yongying Fund's Zhang Haixiao said that for the upstream semiconductor industry tied to AI, demand growth cannot be met by current supply, and corporate order visibility is high.
Taking the memory industry as an example, looking toward the fourth quarter of 2026 and into 2027, new capital expenditure by global memory makers will still not be enough to fully form production capacity supply, and capacity tied to capital spending from this boom cycle will not be released until at least the second half of 2027. The supply-demand relationship in the industry is difficult to reverse, and commodity prices remain strong.
E Fund's Qi He said global supply chains are still being restructured, and mismatches between supply and demand for goods create both opportunities and risks, with electronics, telecommunications, power equipment and new energy, chemicals, industrial metals, and minor metals among the firm's key focus areas.
Quality companies in electronics, telecommunications, and power equipment and new energy may face short-term challenges alongside their industries, but their growth logic remains relatively solid.
Huatai-PineBridge Fund's Dong Chen said resources and technology remain the two relatively favored directions over the medium to long term.
In technology, the industry trend is clear, with attention on subsectors and individual stocks where valuation and fundamentals are appropriate. On resources, supply shocks from geopolitical conflicts and global supply chain restructuring may continue to push up the center of commodity prices. On domestic demand, policy signals are gradually strengthening, and a fundamental inflection point is approaching.
E Fund's He Chongkai said China's semiconductor equipment sector is seeing structural opportunities stand out.
Against the backdrop of a global wafer capacity shortage brought about by artificial intelligence, Chinese wafer fabs across memory, logic, power, and analog are entering a major era of global share expansion, while over the next three years the localization rate of semiconductor equipment is expected to rise from 20-30% toward 60-70%. Looking ahead, increasingly mature and advanced Chinese semiconductor equipment is expected to go global.
E Fund's Chen Hao said future investment opportunities will also be more balanced, with the market entering a stage of consolidation after two years of gains.
The market is now in an observation period, waiting for clarity on global inflation, liquidity, AI progress, and the U.S. midterm elections, and opportunities will become more balanced. The firm will continue to focus on the development of the AI industry while also putting more energy into sectors that have fallen sharply over the past few years, such as AI applications, pharmaceuticals, and consumer, in hopes of continuing to create excess returns for holders.
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