The analyst suggests Chinese semiconductor localization stocks like CXMT, ACMR, and NAURA as attractive investments for the second half of 2026, indicating a likely investment frenzy around CXMT. They also consider shorting Apple supply chain stocks like CRUS due to low AI exposure, implying a bearish view on Apple-related vendors.
CXMT's IPO market cap could be RMB 5 trillion, indicating strong domestic investor interest; capital raised will flow into Chinese semiconductor localization stocks; Apple supply chain vendors are moving away from Apple exposure towards AI, suggesting weakness in Apple business.
Potential attractive investment opportunities for 2H26 — I still think they are likely to be Chinese semiconductor localization names. A few days ago, I had meetings with Chinese sell-side analysts, and they said CXMT’s market cap immediately after IPO could be at least RMB 5 trillion. It seems that many Western investors are underestimating the investment frenzy around CXMT within China. I was also surprised when I first heard the RMB 5 trillion number, but I don’t think it is completely unreasonable. Most of the capital raised through CXMT’s IPO will likely flow into Chinese semiconductor localization stocks. Names like ACMR and NAURA look promising. I also think shorting the Apple supply chain could be an interesting idea… but there are not many Apple supply chain names with low AI exposure. Maybe CRUS is one of the few? But isn’t that itself a bearish point on Apple? If the Apple business were truly strong and attractive, why are so many Apple vendors trying to move away from Apple exposure and gain AI exposure instead?
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