【EDGE Dual Momentum Weekly Report】20260423 AI Computing Power Ignites High-Speed Transmission, Capital Bets Heavily on Market Leaders

Weekly Capital Flow Analysis

This week's capital flow displayed a high-level rotation pattern. While mainstream capital remains anchored in AI computing infrastructure and high-speed transmission, there are signs of outward diffusion toward lower-tier advanced packaging equipment, the Apple supply chain, and certain non-electronics sectors with turnaround themes. The market is not experiencing systemic risk, but rather a tactical shift from "concentrated attacks" to "multi-point flowering," as capital continues to seek second-tier targets that have not yet fully reflected their themes.

The core discipline of EDGE is to abandon the futile effort of predicting market bottoms and expecting catch-up rallies. Our sole task is to use quantitative models to capture the market leaders—the "leading stocks" with the strongest price momentum and most concentrated capital flows. To this end, we deconstruct the market into a [Dual-Track Core Matrix]: Tier 1 (Market Cap and Volume Top 1-50) is the macro battlefield dominated by Foreign Institutional Investors, which determines the overall market direction; Tier 2 (Top 51-400) is the industrial battlefield for Domestic Fund Managers and local institutions, focusing on mid-term trends; Tier 3 (Top 401-1000) is the speculative battlefield for short-term Speculative Capital, where themes and chip distribution dictate everything. All targets eventually fall into our [Dual-Track Core Matrix]: the Y-axis represents the "EDGE Momentum PR Score," indicating the intensity of capital pursuit; the X-axis represents the "EDGE Fundamental PR Score," representing corporate profitability and growth. We focus on targets in the upper-right quadrant, [Dual-Engine Resonance] (excellent momentum and fundamentals), and the upper-left quadrant, [Momentum-Driven Rally] (driven purely by momentum).

This week's capital battlefield primarily revolved around four core themes: 1. [AI Computing Infrastructure and High-Speed Transmission], where Foreign Institutional Investors are heavily deployed; 2. [Advanced Packaging and Semiconductor Equipment Localization], sparked by Domestic Fund Managers and internal capital; 3. [Apple Supply Chain and Key Electronic Components], where institutional capital resonates; 4. [Niche Industrial and Traditional Industry Turnarounds], positioned by Speculative Capital for defensive purposes. For the leaders and capital structure of each theme, please refer to the [EDGE Dual-Track Core Matrix Diagram] below.

EDGE Dual-Track Core Matrix Diagram

Tier 1 | Foreign Institutional Investors Macro Battlefield

• Battlefield Attribute: Tier 1 (Liquidity Top 1-50) | Foreign Institutional Investors Macro Battlefield
• This week's main themes: AI computing infrastructure and high-speed transmission, Apple supply chain, and key electronic components. Foreign Institutional Investors are heavily betting on core AI supply chains, especially CPO Silicon Photonics and high-end CCL materials with high technical barriers, where momentum and fundamentals are highly synchronized.

Tier 2 | Domestic Fund Managers Mid-Cap Growth Stocks

• Battlefield Attribute: Tier 2 (Liquidity Top 51-400) | Domestic Fund Managers Mid-Cap Growth Stocks
• This week's main theme: Advanced packaging and semiconductor equipment localization. Domestic Fund Managers and Speculative Capital joined forces to push up the semiconductor equipment sector; although fundamentals for some stocks haven't caught up yet, expansion expectations support strong momentum.

Tier 3 | Speculative Capital Dominated Speculative Trades

• Battlefield Attribute: Tier 3 (Liquidity Top 401-1000) | Speculative Capital Dominated Speculative Trades
• This week's main theme: Niche industrial and traditional industry turnarounds. As electronic stocks oscillate at high levels, non-electronic stocks with fundamental turnarounds, high yields, or revenue recognition themes have become safe havens for Speculative Capital.

Thematic Macro-Logic | AI Computing Infrastructure and High-Speed Transmission

The underlying logic of the AI computing race has evolved from simple GPU stacking to the extreme extraction of overall data center I/O performance. The core contradiction in the current market lies in the exponential growth of AI model complexity and data throughput, while traditional data transmission architectures have become physical bottlenecks for computing power release. This fundamental shift in supply and demand is driving a multi-year infrastructure specification revolution. The upgrade path from 400G optical modules to 800G and even 1.6T is now an industry consensus, with certainty comparable to the evolution of wafer manufacturing processes. The reason Tier 1 Foreign Institutional Investors macro capital is entering heavily at this moment is that they recognize this non-cyclical wave of capital expenditure led by technological specification iterations.

Smart money trades on expectations, not current status. The current high valuation premiums given to the high-speed transmission supply chain are not based on realized financial reports but on the early pricing of the "monetization" path for financial reports in the next 2-4 quarters. The market expects that with the conclusion of inventory destocking by North American Cloud Service Providers (CSPs) and the introduction of next-generation AI cluster architectures (such as NVIDIA Blackwell), revenues and gross margins of related suppliers will experience a "Davis Double." Foreign Institutional Investors are trading on the oligopolistic players who possess technical moats and can pass rigorous CSP certifications in this upgrade cycle; their order visibility and profit elasticity will far exceed pro-cyclical industries like consumer electronics. This is a war for the right to lay the "highways and pipelines" of the future data world, and its potential for value re-rating is immense.

Core Leaders Micro-Insights

🎯 Core Leader Insight: 3081 LandMark Optoelectronics

(1) Absolute Moat and Supply Chain Position

3081 LandMark Optoelectronics plays the critical role of an "arsenal" in the global field of epitaxial wafers and die foundry for high-speed optical communication laser diodes (LD) and photodetectors (PD). Its core moat lies in its deep expertise in Indium Phosphide (InP) and Gallium Arsenide (GaAs) MOCVD epitaxial growth technology, where yield rates and customization capabilities have built extremely high technical barriers. As Silicon Photonics becomes the mainstream solution for internal interconnects in AI data centers, LandMark Optoelectronics serves as a key partner integrating optical signal sources (lasers) with silicon photonic chips, making its position in the supply chain irreplaceable. Its customer base includes global first-tier optical module manufacturers and chip design giants, essentially controlling the bottleneck of the upstream high-speed transmission industry chain.

(2) Momentum Catalyst (Recent Marginal Changes)

The core catalyst for recent momentum stems from market expectations that demand for 800G optical modules will see explosive growth in the second half of the year. As major CSP customers complete platform validation, orders have begun to be released significantly. Marginally, the market is closely watching the rapid increase in its Datacenter business revenue share, as well as potential epitaxial demand from Co-Packaged Optics (CPO) architectures. Following the introduction of the NVIDIA Blackwell platform, the demand for optical communication bandwidth will further double. As a core supplier, LandMark Optoelectronics' order visibility and pricing power are rising simultaneously, making it a focus for market capital.

(3) Dual-Track Fundamental Verification

Applying the [Dual-Engine Resonance] strategic label, the verification path for 3081 LandMark Optoelectronics is clear: First, the "explosive demand for AI computing power" directly translates into strong pull momentum for 800G/1.6T optical modules from CSP customers; this is the first engine. Second, the "high-speed transmission" trend driven by specification upgrades continues to increase the shipment proportion of its high-margin silicon photonics-related products, optimizing the product mix; this is the second engine. Regarding financial quality, the focus is on whether gross margin can return to historical highs above 40% as Datacenter products scale up, and whether year-over-year revenue growth shows significant quarter-over-quarter acceleration. An EDGE Fundamental PR Score as high as 92.0 reflects high market expectations for a qualitative change in its profit structure.

🎯 Core Leader Insight: 6274 Iteq

(1) Absolute Moat and Supply Chain Position

6274 Iteq is a leading global supplier of high-frequency and high-speed Copper Clad Laminates (CCL). Its moat is built on cutting-edge material science formulas and stable mass production capabilities. In the field of AI servers and switches, as transmission speeds move from PCIe Gen 4/5 toward Gen 6, and Ethernet upgrades from 400G to 800G/1.6T, the requirements for PCB substrate Insertion Loss are extremely stringent. Leveraging its leadership in Extreme Low Loss grade materials, Iteq has become a major supplier for switch leaders and AI accelerator card OAMs (OCP Accelerator Modules). Its products have long certification cycles and high customer stickiness, forming an oligopoly in the AI hardware materials sector.

(2) Momentum Catalyst (Recent Marginal Changes)

The momentum catalyst primarily comes from the clear trend of AI switch specification upgrades. The market has recently confirmed that large-scale deployment of 800G switches will commence in the second half of this year, with PCB layer counts and CCL material grades significantly higher than those of the 400G generation. This means 6274 Iteq will not only see growth in shipment volume but, more importantly, a dual increase in average selling price (ASP) and gross margin. Material upgrade demand from AI server motherboards, switches, and ASIC accelerator cards is creating a strong marginal pull, driving continuous optimization of capacity utilization and product mix.

(3) Dual-Track Fundamental Verification

Examined through the [Dual-Engine Resonance] framework, the growth logic for 6274 Iteq is extremely solid. The first engine, "explosive demand for AI computing power," drives the iterative demand for server and switch hardware. The second engine, "material upgrades," allows Iteq to benefit directly from this trend, as the shipment share of its high-end Extreme Low Loss and Ultra Low Loss products will see a structural increase. The key to fundamental verification lies in observing whether AI-related application revenue can exceed 30% and drive the overall gross margin to stabilize above 25%. Its EDGE Fundamental PR Score of 89.7 reflects the market's recognition that the company is transforming from a past networking cyclical stock into a core material supplier for AI infrastructure with long-term growth potential, reshaping its profit quality and stability.

Thematic Macro-Logic | Advanced Packaging and Localization of Semiconductor Equipment

The paradigm shift in the semiconductor industry is accelerating from front-end process scaling toward back-end heterogeneous integration. The non-linear demand for computing power and memory bandwidth from AI chips has created a structural supply-demand imbalance in 2.5D/3D advanced packaging. To meet the urgent capacity needs of end customers, the foundry leader has revised its CoWoS-related capital expenditures upward several times since the second half of 2023. This scale and speed of expansion have exceeded the normal supply cycles of first-tier international equipment giants, opening a highly valuable penetration window for the local supply chain. This is the core driver for domestic equipment and consumables manufacturers: a golden entry point driven by end-demand pressure, capacity gaps, and geopolitical catalysts.

Tier 2 institutional capital, particularly Domestic Fund Managers and local high-net-worth individuals, operates not by waiting for financial figures to fully manifest, but by trading the "expected slope" of growth. The current high valuation premium given to this group is based on high certainty regarding the structural transformation of revenue and gross margin over the next 2 to 4 quarters. The market is pricing for "order visibility" rather than "current EPS." This smart money expects that CoWoS expansion CAPEX will begin to translate into substantial revenue for second-tier equipment and consumables manufacturers from late Q3 to early Q4, accompanied by improved utilization rates and product mix optimization, bringing excess operating leverage benefits. This is a capital positioning battle based on structural industry changes rather than a traditional business cycle trade.

Core Leaders Micro-Insights

🎯 Core Leader Insight: 6829 Chien Fu Precision

(1) Absolute Moat and Supply Chain Position

The core moat of Chien Fu Precision lies in its "certification and trust assets" for key components of semiconductor equipment. The company has long been a qualified supplier of vacuum chambers and related precision components for Applied Materials, the world's largest semiconductor equipment manufacturer, with products directly embedded into core machines for front-end processes such as etching and thin-film deposition. This position means its manufacturing processes, quality control, and mass production capabilities have passed the industry's most rigorous validation standards. When the foundry leader seeks to localize the supply chain to accelerate expansion, "Tier 1.5" suppliers like Chien Fu Precision, which already possess a proven track record, become the most direct and lowest-risk partners. Its supply chain status is shifting from indirect supply to direct supply for certain projects, significantly increasing its strategic value.

(2) Momentum Catalyst (Recent Marginal Changes)

The catalyst stems from a qualitative change in the order structure. In the past, its growth curve was synchronized with the CAPEX cycle of global equipment giants; now, new marginal momentum comes from "rush orders" and "localization" demands for CoWoS expansion. Market rumors suggest it is not only taking over orders redirected from international equipment giants but has also begun directly supplying certain non-core but urgent chambers and modules to domestic foundries. This shift from passive order-taking to actively entering the end-customer supply chain is the fundamental reason its EDGE Momentum PR Score has soared to 99.0. The market is re-evaluating its Total Addressable Market (TAM) and customer structure.

(3) Dual-Track Fundamental Verification

The [Momentum-Driven Rally] here is not built on thin air but on a solid fundamental foundation. Chien Fu Precision has an EDGE Fundamental PR Score as high as 93.5, reflecting its past stable profitability and high gross margins. The strategic label "CoWoS expansion spillover to domestic equipment and consumables" is perfectly validated here: the core of CoWoS equipment is also vacuum chambers and precision metal parts, which is exactly the company's core business. New orders are not just an addition to revenue but a direct reuse of existing capacity and technology, expected to bring significant gross margin contributions and operating leverage. The high EDGE Fundamental PR Score provides a margin of safety, while the strong momentum catalyst opens up space for upward profit revisions.

🎯 Core Leader Insight: 3581 Epoch

(1) Absolute Moat and Supply Chain Position

Epoch's moat is reflected in its "positioning and flexibility in niche processes." Compared to large platform-style equipment manufacturers, Epoch focuses on key consumables and small equipment for specific process steps, such as polishing heads for Chemical Mechanical Planarization (CMP) and Retainer Rings. Its position is akin to a "special forces unit" in the supply chain, providing highly customized and fast-response solutions. In the CoWoS process, due to multi-layer stacking and Redistribution Layers (RDL), the frequency and precision requirements for CMP polishing are much higher than in traditional logic processes, leading to a dual increase in demand volume and value for Epoch's related consumables. Its moat lies not in scale, but in the technical depth of solving specific process pain points.

(2) Momentum Catalyst (Recent Marginal Changes)

The trigger for momentum lies in the dual fermentation of "consumable attributes" and "domestic substitution." The rapid ramp-up of CoWoS capacity means a significant increase in machine operating hours, directly driving the demand for high-frequency replacement consumables. The marginal change is that the high-end CMP consumables market, previously dominated by US and Japanese manufacturers, has given local manufacturers like Epoch an excellent opportunity for validation and adoption under lead-time pressure and cost considerations. With an EDGE Momentum PR Score as high as 98.9, the market expects its revenue to shift from linear to exponential growth, where every upward revision of foundry capacity will directly translate into shipment expectations for its consumables.

(3) Dual-Track Fundamental Verification

Epoch's EDGE Fundamental PR Score is 80.0, which, while not as top-tier as Chien Fu Precision, still places it in the front rank, indicating a stable profit base. The interpretation of the strategic label "CoWoS expansion spillover" here leans more toward an explosion in "volume." The company's business model has strong consumable attributes; once its products enter the CoWoS supply chain, subsequent revenue will be highly correlated with foundry output (Wafer Starts), forming a sustainable cash flow. The current [Momentum-Driven Rally] is trading on this "0 to 1" market share breakthrough and the subsequent "1 to N" scaling potential. The market is willing to tolerate its relatively lower historical fundamental data because it expects the new growth curve brought by CoWoS to completely reshape its financial model, particularly with the potential for a structural jump in gross and operating margins after revenue scale expands.

Thematic Macro-Logic | Apple Supply Chain and Key Electronic Components

Tier 1 institutional capital is strategically rotating from the overheated AI server supply chain into key electronic components that possess high operating leverage and bottoming inventory cycles. Market pricing logic has shifted from chasing "realized" AI revenue toward positioning for the "imminent" recovery of consumer electronics. While Apple's WWDC AI strategy did not immediately ignite replacement demand, it laid the groundwork for potential specification upgrades in the iPhone 16 in the second half of the year. Smart money is paying a valuation premium for the expectation of this "AI hardware supercycle."

The core driver of this rotation lies in the fundamental reversal of the supply-demand structure. After more than 18 months of inventory destocking, channel inventories in the mobile and PC supply chains have dropped to historical lows. Any marginal improvement in end-demand will trigger rapid restocking orders, bringing significant utilization rate recovery and margin elasticity to upstream component manufacturers. Compared to the high base of AI servers, the financial base of these component stocks is extremely low, providing asymmetric upside potential. Tier 1 institutional capital is entering now, betting on financial visibility from Q3 this year to H1 next year; they are willing to take risks on the left side to capture the most intense profit upward revisions on the right side.

Core Leaders Micro-Insights

🎯 Core Leaders Insights: 8358 Co-Tech

(1) Absolute Moat and Supply Chain Positioning

8358 Co-Tech, as a leading global manufacturer of specialty copper foil, has built its moat on the dual pillars of material science and precision manufacturing processes. The company is not only an oligopolistic supplier of high-frequency, high-speed materials for AI servers, but its high-end RTF (Reverse Treated Foil) and VLP (Very Low Profile) copper foils are also indispensable keys to achieving high-speed transmission in future high-end smartphones, AI PCs, and other devices. It plays the role of "upstream to the arms dealers" in the supply chain, directly determining whether downstream PCB and CCL manufacturers can enter the top-tier application fields, possessing strong bargaining power and technical lock-in effects.

(2) Momentum Catalysts (Recent Marginal Changes)

The market's valuation of Co-Tech is evolving from a single "AI server concept stock" to a "comprehensive high-speed transmission platform." Recent momentum catalysts lie in the market's realization that with the implementation of terminal AI applications such as Apple Intelligence, the demand for internal data transmission rates in devices will undergo a structural leap. This means Co-Tech's high-end product lines will accelerate penetration from the server side into the consumer electronics sector. With an EDGE Momentum PR Score as high as 94.6, this reflects the repricing by capital regarding its TAM (Total Addressable Market) expansion.

(3) Dual-Track Fundamental Verification

This perfectly embodies the strategic label of 【Dual-Engine Resonance】. The first engine is the solid AI server business, contributing stable high-margin cash flow and establishing downside support for its financial reports; this is the foundation for maintaining the EDGE Fundamental PR Score at a high level of 81.4. The second engine is the catch-up momentum driven by expectations of a consumer electronics recovery. The verification points for its financial report quality lie in observing whether the shipment proportion of high-end consumer application products increases, as well as the quarter-on-quarter increase in gross margin brought by the recovery in capacity utilization. Institutional investors expect these dual engines to resonate in the second half of the year, driving earnings beyond existing market expectations.

🎯 Core Leaders Insights: 3105 Win Semi

(1) Absolute Moat and Supply Chain Positioning

3105 Win Semi is the absolute leader in global Gallium Arsenide (GaAs) wafer foundry, with a market share exceeding 70%. Its economies of scale and technological leadership form an insurmountable moat. In the mobile communications field, power amplifiers (PA) for almost all smartphones require the GaAs process, and Win Semi is the core foundry partner for PA suppliers in the Apple and Android camps (such as Broadcom and Qorvo). Its capacity and yield directly define the supply landscape of the global RF front-end industry.

(2) Momentum Catalysts (Recent Marginal Changes)

Having undergone a two-year smartphone inventory correction, Win Semi's capacity utilization once hit rock bottom, which was the greatest headwind. Recent marginal changes include: 1. Clear inventory replenishment signals in the Android smartphone market; 2. Market expectations that the iPhone 16 will significantly increase its RF Content to support terminal AI computing and WiFi 7, with PA usage and specifications upgrading simultaneously. The EDGE Momentum PR Score has soared to 95.2, representing the market's strongest vote of confidence in its "capacity utilization V-shaped reversal," betting that the worst is over.

(3) Dual-Track Fundamental Verification

The logic here is manifested as the superposition of "cyclical bottoming" and "specification upgrades." The first engine comes from inventory replenishment in the Android camp, which will pull capacity utilization away from the loss-making line and stabilize the fundamentals. The second engine comes from high-value orders for new Apple devices, which will be the key driver for a significant rebound in gross margins and profitability. Verification of its financial report quality will focus on the quarter-on-quarter slope of gross margin. Once the gross margin returns from the low 20s to over 30%, it will confirm that its strong operating leverage is being released, and the realization of financial figures will validate the current momentum strength.

Thematic Macro-Logic｜Niche Industrial and Traditional Industry Turnaround

【Thematic Macro-Logic】

The current market trend is dominated by Tier 3 Speculative Capital. The core characteristic of their trading behavior is chasing high-recognition thematic stocks with rapid fermentation potential, rather than traditional large-cap heavyweights. After prolonged and crowded trading in mainstream electronic groups, especially the AI-related supply chain, valuations have reached relative highs, and potential alpha has converged. This sensitive capital flow is actively seeking undervalued areas that have not been fully priced and possess defensive and catch-up potential, causing the battlefield to extend from electronics to non-electronic groups; thus, niche industrial and traditional industry turnaround stocks have become the strategic focus of this stage.

The underlying logic of why this smart money is willing to give non-electronic groups a higher valuation premium at this moment is not simple hedging demand, but rather early positioning for structural shifts. First, global supply chain restructuring and regional manufacturing trends have brought qualitative changes to the order structure of industrial component manufacturers with niche technologies. The increased proportion of high-margin industrial and automotive-grade products is reversing the destiny of past consumer electronics business cycles. Second, specific drivers in the domestic macro-environment, such as public works construction, energy transition infrastructure, and marginal easing of housing market policies, have injected clearly visible demand visibility into specific traditional industry sectors.

The market's path to financial report realization is mainly concentrated on "continuous expansion of gross margins" and "emergence of operating leverage." Compared to electronic stocks pursuing absolute revenue growth, this capital values the pricing power of niche companies in specific fields and the margin bounce brought by the dilution of fixed costs as demand warms up. Therefore, current high momentum is not unfounded speculation but rather the pricing-in of expectations that the Operating Margin will jump in the next 2-3 quarters. This is the trading core for which Tier 3 Speculative Capital is willing to bear short-term high volatility in exchange for medium-term earnings verification.

Core Leaders Micro-Insights

【Core Leaders Micro-Insights】

🎯 Core Leader Insight: 2460 Kian Tong

(1) Absolute Moat and Supply Chain Position

2460 Kian Tong, as an electrical terminal and connector manufacturer, has built its moat on the dual foundations of "high customization" and "certification barriers." Unlike standardized consumer electronics connectors, Kian Tong is deeply rooted in high-power, high-durability industrial, automotive, and server application fields. Its core competitiveness lies in co-developing irregular, high-current terminals that meet stringent safety standards (such as UL certification) with customers. Once certified and integrated into the customer's supply chain, this creates extremely strong customer stickiness and switching costs, effectively blocking price competitors. In the supply chain, Kian Tong plays the role of a "critical small component"; while it does not account for a high portion of the customer's total cost, it is vital to the overall safety and stability of the system, granting the company excellent bargaining power.

(2) Momentum Catalyst (Recent Marginal Changes)

The ignition point for momentum comes from the market's value rerating of its product portfolio optimization. In the past, Kian Tong had a high proportion of home appliance applications, which limited its valuation. However, the most significant marginal change is the marked increase in its penetration within high-growth areas such as New Energy Vehicles (charging piles, battery packs) and AI servers (Power Supply Units, Power Distribution Units). These applications require current carrying capacity and durability far exceeding traditional consumer electronics, perfectly matching Kian Tong's technical niche and directly driving a structural upward shift in its Average Selling Price (ASP) and gross margin. This transformation has caused the market to redefine it from a traditional component factory to a key enabler in the AI infrastructure and EV supply chains.

(3) Dual-Track Fundamental Verification

Applying the "Catch-up Candidate" label, the high momentum (EDGE Momentum PR Score 98.4) of 2460 Kian Tong is gradually gaining support from its strong fundamentals (EDGE Fundamental PR Score 84.0). The verification trail of financial reporting quality is clearly visible: gross margins over recent quarters have shown a trending climb, significantly outperforming peers. This confirms that the aforementioned "product portfolio optimization" is not just a story but a real profitability capability already reflected in the income statement. Although revenue has not shown explosive growth, the increase in profitability is more critical, indicating that the company's operating leverage is emerging. The market expects this "qualitative change" to continue accelerating in future financial reports, thereby granting it a valuation that transcends traditional component manufacturers.

🎯 Core Leader Insight: 2540 Ai Shan Lin

(1) Absolute Moat and Supply Chain Position

The moat of 2540 Ai Shan Lin does not come from a single technology or asset, but from its unique "one-stop integrated platform" in the Taiwan real estate market. The company's business spans upstream land development, midstream construction planning, and downstream proxy selling and advertising, forming a closed-loop value chain. The greatest advantages of this model are: first, through self-built and sole-agency projects, it accurately grasps market pulses and customer data to feed back into front-end land development decisions; second, the massive proxy selling team is not just a sales channel but a primary creator of market liquidity, giving the company powerful pricing influence over regional markets. This integrated model creates profit margins and market control far exceeding those of pure developers or proxy selling peers.

(2) Momentum Catalyst (Recent Marginal Changes)

The core marginal change catalyzing its momentum comes from the dual tailwinds of the macroeconomic environment and industrial policy. First, market expectations of future interest rate cuts have lowered financing costs for homebuyers; second, the "New Youth Home Loan" program has significantly stimulated the early release of rigid demand, which is exactly the target audience for Ai Shan Lin's main products (small to medium-sized residential units). Additionally, after experiencing significant previous increases, construction costs have recently stabilized, easing cost pressures. The overlap of these factors has led to a significant recovery in market buying sentiment and confidence, directly reflected in the signing speed of Ai Shan Lin's proxy selling projects and the sales rates of its self-built projects.

(3) Dual-Track Fundamental Verification

As a typical "Catch-up Candidate" target, the stock price momentum (EDGE Momentum PR Score 97.8) of 2540 Ai Shan Lin significantly leads its book fundamentals (EDGE Fundamental PR Score 72.5). This phenomenon reflects the unique financial recognition characteristics of the real estate industry. The core of its fundamental verification lies in the "contract liabilities" item on the balance sheet. This item represents pre-sale project payments that have been contracted but not yet completed and delivered; it is a "high-certainty reserve" for future revenue and profit. The current high momentum in the market is an early pricing of its massive and continuously growing contract liabilities. Investors are trading on the expectation that these reserves will be converted into high-margin revenue on the income statement in batches over the next 2-3 years. Therefore, although current EPS has not yet fully exploded, its profit visibility is rare within the non-electronic sector, forming a solid foundation for momentum.

This week, the Weighted Index continued to hit record highs led by heavyweight stocks, yet the market structure showed extreme divergence. Capital momentum is highly concentrated in the AI computing supply chain, forming a "strong index, divergent stocks" narrow-breadth upward pattern. AI infrastructure, particularly the CCL and connector groups surrounding servers and high-speed transmission, showed a breakout trend with rising prices and volume, becoming the absolute main battlefield of the market. The capital spillover effect from the CoWoS expansion theme is significant, with some domestic equipment and consumable factories showing catch-up style high-volume long green candles. In contrast, while the Apple supply chain has seen some recovery, the strength and sustainability of its momentum remain to be seen, with most stocks still consolidating near the quarterly moving average. Non-electronic groups showed spotty performance, with capital only briefly staying in niche traditional industries and heavy electric power, failing to form a mainstream trend. Regarding marginal changes, the trend of capital spreading from first-tier AI heavyweights to lower-positioned second and third-tier suppliers is clearly visible, though warnings of insufficient volume at high levels have also been observed in some overextended stocks.

【Theme Continuation Diagnosis】

1. AI Computing Infrastructure and High-Speed Transmission:
   1. Momentum Diagnosis: Entering a "high-level volatility, strong consolidation" phase. Leaders (such as server ODMs and high-end CCL plants) have begun to show long upper shadows or high-level dojis after continuous highs. Although trading volume remains high, price-push efficiency has slowed. Fundamentals (industrial follow-on orders after NVIDIA's earnings) remain a strong support, but short-term divergence is too large and technical indicators are overheated; it is expected to shift from a rapid surge to high-level handovers.
   2. Subsequent Deduction: While the leaders rest and consolidate, capital will continue to diffuse to the periphery. The next focus will shift to: (1) support factories such as PCB drilling and electroplating that benefit from material upgrades but whose stock prices are still at relatively low bases; (2) Optical communication CPO concept stocks with clear specification upgrades; (3) second-tier thermal module plants that have not yet fully reflected AI Server cooling demand.
2. Advanced Packaging and Semiconductor Equipment Indigenization:
   1. Momentum Diagnosis: In an "accelerating upward, seeking diffusion" phase. This theme is driven by the established fact of CoWoS capacity tightness and belongs to a Momentum-Driven Rally. Stock prices and volumes of benchmark stocks are cooperating well, climbing steadily along short-term moving averages with no signs of exhaustion yet. Due to the long expansion cycle, revenue contributions will ferment quarter by quarter, providing fundamental protection for stock prices.
   2. Subsequent Deduction: After igniting first-tier equipment and consumable plants, capital will further dig for more obscure opportunities in the supply chain, including: (1) specialty chemical plants providing CoWoS-related process chemicals and grinding fluids; (2) domestic equipment manufacturers near wafer fabs that are entering the verification stage; (3) inspection and analysis service providers for related processes.
3. Apple Supply Chain and Key Electronic Components:
   1. Momentum Diagnosis: Still in the "bottoming out, awaiting catalyst" phase. Although some benchmark stocks (such as optical lenses) have seen bottoming rebounds, they lack offensive volume, and a collective group trend has not yet formed. The market is still waiting for specific details on new model specifications for the second half of the year, especially AI functions, as well as clear signals of recovery in end-user demand for consumer electronics.
   2. Subsequent Deduction: This group is currently a secondary battlefield for the market. However, if the main AI line begins a significant correction, this area will become the first choice for tech capital seeking rotation. At that time, companies with clear specification upgrades such as periscope lenses and titanium casings, and whose first-half revenue has turned positive year-over-year, will most likely attract capital inflows and become new offensive starting points.

Alpha is found not by chasing the peak, but by anticipating the next slope.