A：The rest of the world was generally in poor economic condition at the time. For example, after the great changes in Eastern Europe, many countries are in the stage of institutional reconstruction and economic chaos; the economies of European countries such as Germany and France are also very poor, and there are even foreign exchange crises. In Asia, Japan's economy was weak after the bubble burst, and many of the four Asian dragons were also hit hard in the Asian financial crisis of 1997-1998.

A：Globally at that time, the U.S. GDP growth rate was more prominent, attracting a large amount of global capital into the U.S. market, bringing ample liquidity to the U.S. equity market.

A：The rapid development of capital markets in the United States, especially mutual funds, created a lot of liquidity for the technology bubble. At the same time, major breakthroughs have been made in the field of science and technology in the United States, with companies such as Apple, Microsoft and Amazon entering a period of rapid growth around 2000. In addition, the millennium bug problem also prompted the global investment of hundreds of billions of dollars to solve, indirectly affecting the economic environment and scientific and technological investment at that time.

A：Industrial hollowing is seriously reflected in the rapid growth of Internet traffic at the same time, the efficiency of technological progress is underestimated, resulting in fiber demand forecast errors, laying of optical fiber can not be fully utilized, the formation of a large industrial hollowing phenomenon.

A：At that time, many technology companies had poor financial statements, profit growth declined year by year, and even some companies were still losing money around 2000. This hollowing out of the industry and deteriorating financial conditions have left many companies heavily dependent on external financing for their cash flows, which could break once liquidity tightens, increasing the risk of a dot-com bubble.

A：AI U.S. technology companies are currently more profitable, and valuations have improved compared to the 2000 dot-com bubble, but are not at a virtual high. Moreover, today's AI head companies rely on their own strength to invest, less cash flow constraints, faster business growth, healthy financial statements, compared to the past over-reliance on external financing during the dot-com bubble has a significant difference.

A：Although the bubble risk in AI areas is far from the same level as during the dotcom bubble, there are still some risks. For investors, current AI decisions can be viewed as project decisions, focusing on the dynamics of U.S. head technology companies and their investment in AI areas, rather than simply analyzing the investment space from a quantitative perspective, as this may involve more assumptions, does not constitute investment advice for any individual stock, and mainly serves the analysis of the industry.

A：When evaluating a project, the first thing to look at is whether it covers variable costs. Variable costs such as material costs, if the cost of producing a product (e. g., $5) is higher than the selling price (e. g., $4), the project is financially unviable because it results in a cash loss. In addition to variable costs, fixed costs also need to be considered. Fixed costs such as plant rent or staff salaries are not easily adjusted in a timely manner, and if the project covers fixed costs, it means that the company's EBITDA turns positive and may start to be profitable.

A：If a project does not cover variable costs, the firm should stop production immediately; if it does not cover fixed costs, the firm may continue to produce in anticipation of future improvements, although the net profit on the statement may remain negative.

A：Depreciation costs are the cost of long-lived assets, such as the acquisition of equipment, amortized to future costs over their useful lives. If a project covers depreciation costs, its cash flow will be more substantial, indicating that the project is truly profitable for the business.

A：In the case of Google, for example, the analysis of its cloud business is growing faster and the backlog of orders is growing significantly, indicating that future profits are visible. Based on strict assumptions, even assuming that 70% of the depreciation is borne by the cloud business, the NPV of the project is still $0.6 billion, and if the assumptions are relaxed, the NPV can reach $1.7 trillion. This suggests that from a cloud business perspective, current investment is expected to lead to strong cash flow growth in the future.

A：The early stages of cloud computing require significant capacity expansion to attract customers, and as customers accumulate and the market pie grows, the later stages can generate significant revenue through sustained profits. Judging from the investment of Google and other large North American cloud service providers, the current negative cash flow investment is paving the way for future long-term profit growth, and from the historical experience of the technology industry, this investment is more rational and does not appear extreme bubble.

A：When revenue growth slows and eventually goes down to a certain level, profit growth also starts to go down. At the beginning of this phase, valuations usually do not fall immediately, but wait until the growth rate drops further before slowly repairing. Even at a stage when profit growth is still faster and can offset the downward revision of valuations, overall market performance is likely to rise, but the growth rate will slow to a moderate state.

A：At present, the AI sector, whether from the perspective of capital expenditure or market segments, revenue and profit growth downward conditions have not been met. It is expected that this condition will not be met in the next year or so. Therefore, the overall trend is not yet over.

A：According to the analysis, the strong upward trend in the AI sector can continue at least until after 2028, during which time there may be increasing volatility. Nevertheless, confidence in the overall industry trend remains, but the volatility of stock price performance will continue to increase.

A：The global AI capital expenditure growth rate was originally expected to be about $1.1 trillion in 2027, but now it seems that it may be insufficient. According to the latest results, under optimistic circumstances, AI capital expenditure may reach US $1.5 trillion next year. Even taking into account the price reduction factor after the manufacturer's shipment volume is enlarged, it will reach at least US $1.3 to US $1.4 trillion, which means that the overall growth rate of AI next year may be higher than this year.

A：One of the main risks is cash flow concerns. Many companies rely on large upfront investments when investing in AI, resulting in negative cash flows and the need to rely on external financing. In this case, cash flow problems will persist for the next 2 to 3 years, especially during the fragile stage of the market, and cash flow may be used as a reason to deny AI trends. However, in the long run, the large-scale negative cash flow investment of related manufacturers will significantly promote the development of the cloud computing industry in the next few years and bring huge profits, so such investment is valuable.

A：At present, power shortage is indeed a serious problem, especially in the United States. Although the power shortage has not yet heard the voice that directly affects the rhythm of AI construction, such situations may occur in the future, which may make the spatial distribution of AI construction more balanced, but this will not change the overall trend of the industry.

A：The uncertainty in the AI industry comes mainly from the input of large factories in the model. For example, OpenAI and SL pic account for a large proportion of the computing volume of cloud vendors in the United States. If they fail to fulfill their promises, they may bring risks. However, it is now observed that companies like Srope c are forecasting positive operating profits this year, showing that the AI loop is clear and the risks are generally manageable.

A：It is recommended to pay attention to the communication ETF(515880), which contains optical modules, servers, coaxial cables, optical fibers and other core components, high purity, bright performance, in the same index has a clear advantage. Another recommended product is the Semiconductor Equipment ETF(159516), which has benefited from the logic of storage expansion and has performed strongly this year, which is also worthy of continued investor attention.

A：At present, the global storage capacity is very scarce. In this context, South Korea's Samsung, Hyex and the South Korean government announced a very radical expansion plan, planning to invest about more than 4700 trillion won, which is equivalent to 1.6 times South Korea's annual GDP. The entire country of South Korea is investing heavily in expanding production in the storage sector.

A：Due to the shortage of storage capacity and the aggressive expansion of production worldwide, especially in South Korea, the demand for semiconductor equipment has increased, especially in overseas markets. Therefore, semiconductor equipment may have the logic to go to sea, and the development of AI technology has also changed the valuation logic of semiconductor equipment. From a medium and long-term perspective, I will continue to be optimistic about the semiconductor equipment market.

A：The content stored in the trust ETF is about 40%, and about 10% of the semiconductor device content. This means that the Stron ETF has close to 50% exposure to the storage sector, and with some semiconductor equipment companies, the overall investment potential is greater.

A：It is recommended to pay attention to Xinchuang ETF, because it includes storage and semiconductor equipment related companies and has a large proportion of exposure. In addition, CRE Chip Design ETF and CRE Chip ETF are semiconductor ETFs of CRE Board, which cover the chip design companies of CRE Board and semiconductor companies of the whole industry chain respectively, with greater flexibility. Chip ETF and integrated circuit ETF represent the fundamentals of the semiconductor industry in A shares.

A：In the current communications and semiconductor sectors have achieved large gains, although still optimistic about the AI industry trend, investors need to pay attention to the subsequent market volatility may increase. It is recommended to adopt a low-level layout strategy, and you can consider diversification, layout of other sectors of the product to achieve a balanced portfolio. In addition, market volatility may increase during the intensive period of forecast disclosure, before and after the IPO company's listing, and before and after major events. Investors should be cautious about chasing high operations, controlling positions, and paying attention to recommended core products. While short-term market volatility may be greater, the medium-and long-term trend remains positive.