On March 29, Noah Growth Hybrid Securities Investment Fund disclosed its annual report for 2023. As of the end of the reporting period, the net asset value of the fund shares was 1.230 yuan, with a net asset value growth rate of -3.15% during the reporting period and a benchmark return rate of -5.90%. Fund manager Liu Huiying stated in the annual report that the clear recovery of consumer electronics demand and the growth of new AI demand both prove that the turning point in the chip industry cycle has arrived. Both the chip design sector and the design sector now have a relatively high investment cost-effectiveness. In terms of holdings, the top ten major holdings of Noah Growth Hybrid include North China Huachuang (002371.SZ), Sainty Co (300661.SZ), Zhuosheng Micro (300782.SZ), WEIR Shares (603501.SH), Zhongwei Corporation (688012.SH), Zhaoxin Innovation (603986.SH), SMIC International (688981.SH ), Beijing Junzheng (300223.SZ), Huagong Silicon Industry (688126.SH), and Huada Jiutian (301269.SZ). Liu Huiying mentioned that the fund will adhere to investing in the technology sector, accompany the growth of excellent companies, and believe in the bright future of Chinese technology. Focusing on the technology sector, the investment framework is to select stocks from top to bottom, first choosing high boom cycle industries, then selecting leading companies in good industries, and following industry logic to invest for a longer period, accompanying the growth of the industry. Looking at industry allocation, the fund mainly focuses on the chip sector. China's annual chip imports exceed 2 trillion RMB, accounting for over two-thirds of the global chip output value. With the huge engineering dividend in China, the development of Chinese chips will be a high-growth sector lasting for several years. In this growth process, it is necessary to carefully discern, closely track, and grasp the main contradictions, with the most important being understanding the industry. Stock prices are influenced by various factors and will fluctuate, but the key is to grasp the main contradictions in each period and accompany the growth of excellent companies as long as the industry logic remains unchanged. Looking ahead to 2024, the inventory of domestic chip companies has dropped to a reasonable level by the third quarter, with demand showing a significant rebound in the fourth quarter, establishing a turning point in the semiconductor cycle. Chip companies in the U.S. with a stock market recovery in the fourth quarter saw extremely sharp trends in just two months, confirming the start of the global semiconductor upturn cycle. With the emergence of ChatGpt, artificial intelligence will lead a new cycle of hardware innovation after 5G. The clear recovery of consumer electronics demand and the growth of new AI demand all indicate that the turning point in the chip industry cycle has arrived. The release of Huawei phones symbolizes the limited impact of the U.S.' extreme blockade on Chinese technology companies and instead promotes the localization of China's technology industry chain. Both the chip design sector and the design sector now have a relatively high investment cost-effectiveness. It is worth mentioning that during the reporting period, top fund manager Cai Songsong resigned as the fund manager of Noah Growth Hybrid Securities Investment Fund in September 2023, with "newcomer" Liu Huiying taking over the position. In addition to managing Noah Growth Hybrid, Liu Huiying also manages Noah Active Return Hybrid, which has become the highest-performing active equity fund with a return rate of 28.7%. Looking at the top holdings disclosed at the end of last year, the entire AI industry chain cannot be overlooked for its contributions. In the fourth-quarter report of 2023, Liu Huiying mentioned that with the advent of ChatGpt, artificial intelligence has rapidly developed and will impact almost all industries, potentially becoming the strongest industry trend of the future. Overseas leadership, from constantly iterating algorithm large models, to various applications connecting with AI, to the rapid development of computing chip power, the industry is progressing rapidly. Domestic companies are also actively conducting research in the field of artificial intelligence related to their business, and behind the soaring stock prices are these companies actively laying out their industry. The wave of artificial intelligence is irreversible.