The semiconductor industry has recently experienced significant fluctuations, capturing the attention of investors and market analysts alikeOn the 8th of this month, after a substantial increase the previous day, the sector seemed to trend downwardYet amidst this general decline, a remarkable outlier emerged: Higon InformationDefying market trends, its stock price climbed, propelling its total market capitalization past that of Semiconductor Manufacturing International Corporation (SMIC) and taking the lead in valuation within the Science and Technology Innovation Board (STAR Market). This swift ascent marked a transition of power in the semiconductor domain, illuminating the immense potential that lies in this burgeoning field.
Adding fuel to the fire, the Consumer Electronics Show (CES) recently commenced, heralding fresh industry developmentsNotably, Nvidia unveiled a series of groundbreaking products, including innovative handheld devices, which are poised to invigorate growth sectors within the domestic semiconductor industryAccording to SEMI, a semiconductor industry association, the global expenditures on wafer fab equipment are projected to reach a staggering $113 billion in 2024, showcasing a clear upward trajectory in industry recoveryExternal constraints further amplify the urgency for domestic replacements of semiconductor equipment components, underscoring the importance of fostering a self-reliant semiconductor ecosystem.
In China, policy support continues to flourishThe National Integrated Circuit Industry Investment Fund (commonly referred to as the "Big Fund") is anticipated to prioritize backing for core technologies and critical component sectors, providing robust assurance for industry developmentAs evidenced by the recent volatility in the semiconductor sector, the Semiconductor Equipment ETF (SH561980) serves as a pertinent case studyOn January 7, it surged by 3.4%, only to experience a market correction the following dayThis pattern reflects not only the sector's volatility but also its susceptibility to broader market influences.
Although current fluctuations appear daunting, long-term prospects for the semiconductor sector remain promising
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Investors should consider the potential for a rebound after the market has stabilized from its adjustmentsThe ETF capturing the semiconductor equipment sector affords opportunities for discerning investorsIt passively tracks the CSI Semiconductor Industry Index, with a near 70% allocation to "semiconductor equipment + semiconductor materials,” thus providing exposure to key industry players like NAURA Technology Group and Northern HuachuangAs the market readjusts, now is an opportune moment to explore investments in this ETF.
For many investors, especially those exploring options beyond direct stock purchases, connecting through associated funds represents a pragmatic approach to entering specific fieldsIn this particular instance, specific connected funds are availableClass A shares are coded as 020464, while Class C shares are coded 020465. Investors can leverage these connected funds for regular investments or one-time purchases based on their strategic financial management.
Engaging in periodic investments, or systematic investment plans, offers unique advantagesInvestors can allocate a fixed amount of funds at predetermined intervals—monthly or quarterly—to acquire shares in these fundsThis consistent strategy, akin to a steady stream, allows investors to engage in the market regardless of its current status, buying more shares during downturns when prices are lower, and capitalizing on gains during upswingsBy adopting this method, investors can gradually accumulate substantial holdings over time.
Conversely, the flexibility of making purchases according to market conditions enables investors to tactically enter the fray, capitalizing on phase-specific investment opportunities as they ariseWhether opting for systematic investment plans or ad hoc purchases, both methods impart a capacity for investors to skillfully navigate volatile market landscapes while gradually building portfolio strength.
Refocusing specifically on the semiconductor sector, it is essential to acknowledge the various factors influencing its short-term movements
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