--- title: "Generally bullish on tech!" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43145439.md" description: "Over the weekend, I reviewed the views of various brokerages. The general consensus is to remain bullish on the tech sector in August, moving away from overcrowded legacy hardware tracks. The strategy for trading AI has shifted: previously, capital focused heavily on upstream hardware like optical modules, chips, and storage; now, it is gradually shifting downstream, with a key focus on software, AI applications, and edge devices. With too much trapped supply in the upstream sector, capital plans to pivot elsewhere, starting by pulling up the downstream segment—a logic that is quite easy to understand. Here are the potential main themes for August voted by users: 1. Consumer goods (Six Networks concept) 2. Bank dividends & innovative drugs 3. AI applications 4. Humanoid robots 5. Non-ferrous metals & new energy 6. Other directions, with AI applications receiving the highest votes..." datetime: "2026-08-03T02:15:53.000Z" locales: - [en](https://longbridge.com/en/topics/43145439.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43145439.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43145439.md) author: "[点金胜手](https://longbridge.com/en/profiles/12090136.md)" --- # Generally bullish on tech! I went through the views of various brokerages over the weekend, and the general consensus is to remain bullish on tech in August, moving away from overcrowded legacy hardware tracks. The strategy for trading AI has changed: previously, funds were fixated on upstream hardware like optical modules, chips, and storage; now, they are gradually shifting downstream, focusing on software, AI applications, and edge devices. With too much trapped capital piled up in the upstream sector, funds plan to switch directions, pulling up the downstream first. This logic is quite easy to understand. Users voted for potential main themes in August: 1\. Consumer goods (Six Networks concept) 2\. Bank dividends, innovative drugs 3\. AI applications 4\. Humanoid robots 5\. Non-ferrous metals, new energy 6\. Other directions AI applications received the highest votes, with humanoid robots following closely. Looking at it this way, August will likely see rotating theme speculation, prioritizing second-tier and small-cap tech targets. Of course, big finance, consumer goods, and innovative drugs won't completely rest; there will be intermittent market activity. AI hardware dropped sharply in July, so there is room for repair and rebound in August. The alternation between new and old tech targets strengthening, leading to a more balanced market, will become the norm going forward. No need to exhaust yourself predicting ups and downs; follow the market signals. Hold your core positions in high-quality tech stocks, and use dips to position in low-position small-cap tech tickets. Allocate 20% of your portfolio to gamble on thematic elasticity, achieving both offense and defense. A bottom is never just a single point; it's a process of long-term grinding and oscillation. This applies whether to the ChiNext index or the AI hardware sector. There are still many people in the current market harboring hopes of bottom-fishing. It will be hard for major players to lift prices directly; they will need to wash out weak hands repeatedly. Patience is needed for a major rally. In the extreme market conditions of July, institutions, quant funds, hot money, and retail investors basically all suffered. The performance of the ChiNext board was lackluster, even weaker than Korean stocks, which truly exceeded expectations. Old saying in stock trading: When the market rises, everyone makes money. Most big losses come from blind aggression. Having survived the pain of July, we hope to break even and turn things around in August. I always believe in mean reversion. The market has seen continuous volume expansion for three days, clearly showing funds slowly entering. The overall market environment is warming up. The current market is clearly divided into two lines: hardware tech and non-hardware tech. Within hardware, there is further distinction between overseas tech and domestic autonomous tech. Overseas tech semiconductors and memory chips are deeply oversold. Once they rebound, their explosive power looks strong, easily making people think a reversal is coming. However, the sector is burdened with a large amount of trapped capital, belonging to an oscillating repair pattern. Do not blindly chase highs during the rebound phase. This type of oversold hardware will likely experience long-term wide-range oscillation. Only after new external themes continuously attract chips, and retail holders of hardware can no longer withstand the oscillation and cut their losses to leave, will hardware welcome the next window for a main upward wave. However, the long-term logic of domestic substitution remains unchanged. I am more bullish on this part, which is expected to stabilize first and lead the rebound to new highs. Additionally, regarding domestic computing power: China's supercomputing internet has successively launched new models, completing the entire chain of domestic computing power infrastructure + local large models. Trillion-parameter large models continue to drive demand for ultra-node cabinets. Although adjusting alongside the tech sector in the short term, the medium-to-long-term logic remains intact. The August market is about to kick off. Recent repeated oscillations and washouts in big tech have been torturous, but bottom-stabilization signals are slowly appearing. Don't expect the tech sector to immediately enter a bull market, but its stabilization is crucial for the sentiment of the broader market. Before July, almost all market funds were sucked into big tech. When the tech sector recedes, the entire market naturally follows suit. Tech stocks have undergone deep corrections, while other themes could only show sporadic pulses. Coupled with shrinking market volume, the difficulty of operation was extremely high. Now that tech has stabilized, market sentiment has noticeably eased. Continuous volume expansion is the best proof that funds are willing to trade again. Therefore, I am optimistic about the August market. The most difficult stage has passed; waiting for recovery. Let's look at sector themes again: I. Brokerages Repeatedly active old faces, worth paying attention to. Brokerages often act as flag-bearers for market protection, frequently taking the lead when indices stabilize. The current pattern is similar to the broader market, forming a triangle consolidation at the bottom with breakout potential. This level cannot be ignored. II. AI Applications First, look at the periphery: On Friday, US AI hardware stocks surged then fell back, facing pressure on gains. In contrast, Microsoft showed strong performance, closing red despite a collective pullback in hardware; Amazon saw its market cap approach $3 trillion with a significant rise due to strong cloud business earnings. The strength in peripheral cloud services and software directions is considered positive for our domestic AI applications. But there is a hidden danger: Over the weekend, the whole internet was hyping AI applications as the main theme for August, creating excessively consistent expectations. At the industry level, no clear fundamental inflection point has been seen for AI applications yet. Caution is needed in the short term for potential divergence. Finally, sharing a few practical response strategies: 1\. Expectations are prone to divergence; only consider the core targets at the forefront of the sector to improve fault tolerance; 2\. Most domestic leading cloud vendors are not listed on the A-share market. The options in A-shares are the three major telecom operators, but their elasticity is weak. You can look along the computing power service extension towards computing power leasing and data centers; 3\. 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