CITIC Securities research reports believe that in the past year, the overall semiconductor cycle has significantly recovered under the price increase of cloud computing power and storage, currently in a state of mild recovery. Looking ahead to 2025, the global semiconductor industry is expected to continue growing, with high prosperity in cloud computing power expected to continue. At the same time, the expectation is for AI on the edge to become a new growth driver for the semiconductor industry to continue its upward trend. The domestic semiconductor industry, as the underlying foundation of technological innovation, is benefiting from policy support, cyclical reversal, incremental innovation, and various bullish factors, with higher participation in the AI on the edge field, likely to deliver better performance in the next phase. It is recommended to focus on the following five main themes: 1) Continued high prosperity in cloud computing power + breakthrough for domestic computing power. 2) The imminent outbreak of edge AI, coupled with incremental demand from consumer electronics. 3) The domestic semiconductor equipment market is expected to further improve, and attention is recommended for the semiconductor equipment/component sector with a logical increase in domestication rates and long cycles. 4) The overall gap in domestic semiconductor manufacturing capacity is still large, especially in the advanced chip field with significant room for improvement, suggesting focus on core assets of wafer/testing factories. 5) Demand recovery in the auto industry + continuous advancement of localization, recommended focus on leading analog chip sectors that are poised to benefit from industry structure optimization.