A-shares are always a cycle of re-correcting consensus expectations; for instance, by this weekend, no one is bullish on the overseas chain anymore.

English summary

But what we want to discuss is not chip positioning, but fundamentals: 1. Price increases are not the original sin; they reflect the prosperity of fundamentals. # Especially the upgrade chain, which is inflation brought by technological iteration and product structure upgrades. If you don't buy such products, what should you buy? 2. AI power – 中原内配, 潍柴动力. By the weekend, the narrative has turned into 'they are AI, cannot be given valuation, next year 10X or less.' What's there to discuss about whether they are AI or not? They can give you sustainable growth at 8X PE. 3. For domestic names at current levels, we add 胜蓝股份 and continue to be bullish on the DRMOS three musketeers. 4. 建滔 at the bottom: entering a stage of mutual killing among holders, it's a chip problem, not fundamentals. Next year it enters a 5X PE stage; we are bullish on price increases and second-generation cloth/PCB re-rating optionality.