Analysis of Investment Logic for A-share Technology Stocks and Opportunities in Sub-sectors in 2026

Based on an in-depth analysis of securities firms’ research data and the market in 2025, I will systematically analyze the investment logic behind securities firms’ intensive research on tech stocks and opportunities in sub-sectors for you.

[1]. From the industry distribution perspective:

• Electronics industry
  : 5 out of the top 10 targets in terms of reception frequency, becoming the most intensively researched area by securities firms
• Mechanical equipment
  : Tied with electronics as the industry with the most research (31 companies each)
• Pharmaceutical biology, computer
  : Also key areas of focus for institutions

The intensive research by securities firms conveys the following key signals:

: After 2-3 years of adjustment, industries such as storage and semiconductors are approaching the key inflection point of capacity rebalancing, with prosperity rebounding driven by AI demand [2]

: Under the strategy of tech self-reliance and self-improvement, upstream links such as semiconductor equipment, AI chips, and advanced packaging benefit from continuous capital expenditure and policy support [2]

: The global layout of Chinese-funded enterprises has become the focus of securities firms’ research; enterprises are transforming from local enterprises to multinational corporations, opening up the imagination space for profit growth [3]

: In 2025, storage chip-related enterprises performed brightly; Weice Technology’s cumulative increase within the year exceeded 135% [4], and testing equipment companies like Changchuan Technology frequently hit record highs [5].

:

:

• The storage price increase trend that started in 2025 is expected to continue driven by AI data
• AI server demand drives high performance growth; for example, Montage Technology’s H1 2025 revenue increased by 58% YoY and net profit increased by 95% YoY [6]

:

• The expansion of domestic wafer foundries and storage IDMs is expected to accelerate in 2026, bringing definite demand increments for upstream domestic equipment suppliers [7]
• CXMT plans an IPO (target valuation of 300 billion yuan), driving the development of related companies in the industrial chain [8]

:

Sub-sector	Core Targets	Core Logic
Storage Chips	GigaDevice, Longsys, Montage Technology	Top 3 in global NOR Flash, breakthrough in niche DRAM, AI server demand pull
Testing Equipment	Weice Technology, Changchuan Technology	Growing demand for semiconductor testing equipment, increasing localization rate
HBM Packaging and Testing	SZKC	Yield rate of HBM3 dedicated production line reaches 98.2%, bound to CXMT and YMTC
Equipment and Materials	NAURA, AMEC	Leading domestic etching equipment, TSV etcher enters CXMT production line

:

• Short-term (1-2 quarters)
  : Focus on performance elasticity under the continuation of price increase trend
• Mid-term (2026)
  : Seize opportunities in equipment and materials amid accelerated domestic substitution
• Long-term
  : Focus on structural opportunities brought by sustained growth in AI computing power demand

:

• As a leading third-party testing company, Weice Technology’s stock price increased by over 135% cumulatively in 2025 [4]
• As a national team in semiconductor testing equipment, Changchuan Technology’s recent closing price hit a record high [5]

:

:

• AI servers require more and more complex chips, driving the growth of testing equipment demand
• The testing difficulty of high-speed, large-capacity chips increases, driving the upgrade of testing equipment

:

• The localization rate of semiconductor equipment is still low; testing equipment, as a key link, is expected to break through first
• Expansion of domestic wafer factories drives demand for local testing equipment

:

• Domestic testing equipment is gradually approaching international advanced levels in technical indicators
• Domestic substitution has been achieved in some sub-sectors

:

: Leading domestic independent chip testing enterprise; currently mainly tests Nor Flash storage chips, with scattered customers and strong universality of testing equipment [4]; received on-site visits from more than 20 securities firms including CSC Financial and JPMorgan Chase in 2025 [4]

: National team in semiconductor testing equipment; complete layout of product lines such as digital testers and sorters; recent stock price hit a record high, reflecting market expectations for industry prosperity [5]

:

• In 2025, the innovative drug industry ushered in an important inflection point; new tracks such as ADC and bispecific antibodies rose rapidly
• Leading enterprises like Junshi Biosciences and BeiGene have entered the harvest period for their R&D pipelines

:

:

• Junshi Biosciences’ EGFR/HER3 bispecific ADC drug JS212 entered Phase II clinical trials, becoming the second such drug globally to enter Phase II clinical trials [9]
• BeiGene’s core products Brukinsa and tislelizumab continued to gain traction, successfully achieving profitability in 2025 [10]

:

• Blythe Bio’s bispecific ADC reached an $8.4 billion cooperation with BMS, setting a record for domestic innovative drugs going global [9]
• Junshi Biosciences’ toripalimab has been approved for 12 indications in mainland China and listed in 10 countries and regions including Hong Kong (China), the US, and the EU [10]

:

• BeiGene’s H1 2025 R&D expenses were 7.278 billion yuan, up 9.80% YoY [10]
• Innovative drug enterprises have entered the value realization period of ‘clinical data + milestone payments + commercialization volume’ [2]

:

• Short-term
  : Focus on clinical progress of new tracks such as ADC and bispecific antibodies
• Mid-term
  : Seize opportunities for valuation restructuring brought by innovative drugs going global
• Long-term
  : Focus on platform companies with global clinical and CMC capabilities

:

• On the AI application side, areas such as AI Agent, AI video generation, and commercial autonomous driving are expected to usher in a commercial inflection point [2]
• With the rise of terminals like AI phones, the entrance attribute of hardware is significantly stronger than that of software [2]

:

:

• Overseas cloud vendors still maintain high growth in capex investment in AI direction
• China is achieving computing power breakthrough through paths such as super node clusters and multi-card collaboration [2]

:

• AI applications in programming, text-to-video, advertising, games, live streaming, etc., are gradually maturing
• AI applications in the real world are deeply integrated with terminals like robots [2]

:

• Diffusion from core computing power (AI chips, optical modules, PCB) to ‘pan-AI’ assets (copper, lithium, aluminum, energy storage, and electrical equipment) [11]
• Supporting industrial chains such as liquid cooling, optical modules, PCB, and storage have achieved high growth [2]

:

• CITIC Securities
  : A-share listed companies are transforming from local enterprises to multinational corporations with global exposure; AI further expands the commercial application landscape [12]
• KY Securities
  : In 2026, the capital market will move from ‘asset revaluation’ to ‘profit repair’, more likely a ‘flat-top slow bull’ rather than a ‘sharp-top short bull’ [13]
• CT Securities
  : Corporate profits are bottoming out and rebounding, valuations still have elasticity; the profit growth rate of all A-share non-financial companies in 2026 is about 14% [12]
• DX Securities
  : 2026 will still be a slow bull market; the market is expected to shift from valuation improvement to performance improvement [13]

• Computing power, storage, software + media + internet (fintech + AI applications)
• Robots, semiconductors, military industry, batteries [13]

• Non-ferrous metals, chemicals, photovoltaics, electricity, insurance, building materials [13]

• Automobiles, electronics, wind power, marine economy, machinery, power grids [13]

: Conduct a balanced allocation around the AI industrial chain, high prosperity directions, and dividend directions to cope with market fluctuations during the style switching period [12]

: Intelligent driving (L2++/L3/L4), liquid cooling (AIDC), humanoid robots [12]

: In 2026, the situation where growth and cycles significantly outperform other styles is expected to improve; as the economy enters recovery growth, consumption recovery is a high-probability event [11]

1. Storage industry cyclical risk
   : This round of price increase is greatly affected by the sustainability of AI demand and the rhythm of capacity release; the concentrated release of new capacity after 2027 may narrow the supply-demand gap [6]

2. Uncertainty in technology catch-up
   : Domestic enterprises face technical gaps such as DDR5 particle yield and HBM mass production capacity, coupled with external factors such as tight semiconductor equipment supply and export controls [6]

3. Innovative drug R&D risk
   : New drug R&D has risks such as clinical failure and non-approval; R&D progress needs to be monitored

4. Market style switching risk
   : The market style in 2026 may be more balanced; the performance of the tech sector may be more differentiated compared to 2025 [13]

The intensive research on tech stocks by securities firms in 2025 conveys a clear signal:

. Sub-sectors such as storage/semiconductors, innovative drugs, and AI applications hold rich investment opportunities driven by multiple factors such as industry cycle inflection points, accelerated domestic substitution, and commercial implementation.

Investors should:

• Seize cycle inflection points
  : Focus on the prosperity recovery of industries such as storage and semiconductors
• Layout domestic substitution
  : Focus on allocating to areas with accelerated domestic substitution such as semiconductor equipment materials and innovative drugs
• Track commercialization progress
  : Closely monitor the commercial implementation of areas such as AI applications and innovative drugs
• Conduct balanced allocation
  : Balance allocation in directions such as tech growth, pro-cyclical, and dividends to cope with market style switching

[0] Jinling API Data

[1] Securities Times - “Institutions Intensively Research Storage Chips; Securities Firms Look Forward to 2026: Tech Remains the Strongest Main Line” (https://www.stcn.com/article/detail/3534407.html)

[2] Securities Times - “New Quality Productivity Investment Advanced; Sub-tracks Reconstruct 2026 Layout Logic” (https://fund.eastmoney.com/a/202512303604879965.html)

[3] Sina Finance - “Top 10 Securities Firms Diagnose A-shares in 2026: Anchor ‘New’ Opportunities, Seize ‘Slow Bull’” (https://finance.sina.com.cn/jjxw/2025-12-30/doc-inheqixq4227409.shtml)

[4] Securities Times - “Institutions Intensively Research Storage Chips! Securities Firms Look Forward to 2026: Tech May Still Be the Strongest Main Line” (https://m.thepaper.cn/newsDetail_forward_32164072)

[5] Sina Finance - “70 Stocks Hit Record High Closing Prices” (https://finance.sina.com.cn/stock/relnews/cn/2025-12-25/doc-inhcznyc3230369.shtml)

[6] East Money - “Combing 6 Potential Stocks in the Storage Industry Chain” (https://caifuhao.eastmoney.com/news/20251226195158576284290)

[7] Sina Finance - “Another ‘A+H’ Is About to Be Born! GigaDevice Passes HKEX Hearing (CICC)” (https://finance.sina.com/jjxw/2025-12-18/doc-inhcfkvi8459946.shtml)

[8] Sina Finance - “The First Domestic Storage Chip Stock! Full Analysis of CXMT Concept Leaders” (https://cj.sina.cn/articles/view/2091254602/7ca6034a00101fk0c)

[9] Caifuhao - “Junshi’s EGFR/HER3 Bispecific ADC Rapidly Advances to Phase II Clinical Trials” (https://caifuhao.eastmoney.com/news/20251225193038665655310)

[10] Licai Bao - “Taiwan Liposome Company (6541) Stock Overview” (https://www.cmoney.tw/finance/6541/f00025)

[11] Hexun.com - “Multiple Securities Firms Release 2026 Investment Outlook!” (https://m.hexun.com/stock/2025-12-26/222956212.html)

[12] CITIC Securities Research Report

[13] KY Securities Research Report