The global hardware AI stocks, including chips, storage, and processors, have recently seen a large wave of increase. Morgan Asset Management's global market strategist Week Huantong believes that the latest performance and supply chain guidance of AI stocks are mostly optimistic, driving the sector towards improvement, and it is expected to continue to benefit in the short term. With government support for the mainland AI industry, the expectation is for high demand to continue, and if more industry peers come to Hong Kong for listing in the future, it is expected to stimulate investment interest. She pointed out that US hyperscalers have increased capital expenditures, and the supply of hardware products in China, Taiwan, and South Korea continues to be tight, indicating that enterprises have strong bargaining power. It is expected that Asian hardware manufacturers will continue to benefit from factors such as the sharp increase in demand in the short term. She further pointed out that the mainland AI industry has government support, and with the authorities accelerating technological independence, the expectation is for high demand to continue. In addition to the semiconductor industry, the power sector will also benefit from AI demand. Large technology stocks listed in Hong Kong have not shown a significant upward trend recently. She pointed out that the technology stocks in the H-share market do not have a high degree of AI content, and some companies continue to be affected by factors such as internal competition in e-commerce, so investors need to be cautious in choosing stocks. She also added that there have been more AI-related stocks listed in Hong Kong recently, and with overseas funds enthusiastic about investing in AI, it may boost investment interest in Hong Kong stocks. Week Huantong suggests that investors should be selective in picking stocks at the moment. In addition to profit visibility, they should also observe the balance sheet, especially in volatile market conditions. It is advisable to maintain a barbell strategy, holding high-growth AI and technology companies as well as high-yield stocks, such as power equipment stocks benefiting from the acceleration of AI.