According to research reports from Citic Sec, due to a combination of factors such as market trading expectations of a Fed rate cut, the US election, and concerns about the sustainability of AI investment, there has been a significant adjustment in the semiconductor and hardware sectors of the US stock market in recent times. Based on the analysis of core elements such as the underlying logic of this round of AI technology, tech giants' willingness and asset-liability support in the AI field, it is determined that sustained investment in the global AI computing power field can continue for 2-3 years. In the long term, it will be necessary to solve the commercial closed loop between upstream CAPEX investment and downstream application output in AI. At the same time, the current global semiconductor industry upswing cycle has only gone through 3-4 quarters and is still in the front half of this round of the cycle. The stock price upswing and duration of the sector have not yet reached the historical average level of the cycle. We remain bullish on the investment opportunities for the semiconductor and hardware sectors in the US stock market over the next 12 months, and we recommend downplaying short-term market volatility and focusing on the two core themes of high prosperity and bottom stabilization and recovery.