In 2022, the overseas TMT sector was impacted by macro factors such as rising interest rates, high inflation, and supply chain constraints, among which the US stock TMT sector / Chinese concept stocks were affected, and the industry trend was weak. However, with the end of the epidemic and the gradual enhancement of macro policy certainty, it is expected that the market still has room to repair in the second half of the year, and some segments are expected to usher in profit release opportunities, which can pay appropriate attention to the leading enterprises with the ability to raise prices.
Subdivision plate outlook
Metaverse: PwC has said that Metaverse could launch a new wave of digitization. The year 2022 is full of uncertainties, and factors such as COVID-19 and supply chain changes will continue to affect consumer behavior and the development of the entertainment and media industries. But among all the uncertainties, the overall trend of the Metaverse market and the forces driving growth have become clearer, the global pattern of the industry is reshaping, consumption patterns may be greatly changed, and Metaverse may set off a new wave of digitalization.
Focus on the target: Meta(Meta), NVIDIA (NVDA), Google (GOOG), U(U)
5G：5G uses edge computing to make the computing, storage capabilities, and content in the cloud closer to the user side, enabling lower network latency and more extreme user experience, enabling applications such as AR, VR, and MR. At the same time, thanks to 5G’s low latency and large bandwidth capabilities, the computing power on the terminal side can also be moved up to the edge cloud, making terminals such as VR headsets lighter, more power-efficient, and cheaper. Therefore, the growth rate of 5G communication construction is enhanced, and there is an opportunity for value revaluation.
Focus on the target: Verizon（VZ）， AT&T（T）， Nokia(NOK)；
Nokia company is a world-famous communication equipment company and is also the pioneer of the international mobile phone market, was founded in 1865, and after a century and a half of development, became the world’s largest communication equipment supplier.
Augmented Reality (AR): Metaverse maturity is a long-term evolution process, accompanied by the long-term evolution of virtual technology. In general terms, “Metaverse” is a collection of virtual time and space, consisting of a series of augmented reality (AR), virtual reality (VR), and the Internet. It is understood that the global market size of VR / AR equipment will reach 480 billion yuan in 2024, with a growth rate of about 54%. As the market continues to expand, and world-renowned technology enterprises have entered the market, the market size is expected to usher in explosive growth.
Focus on the target: Microsoft (MSFT), Apple (AAPL), WIMI Hologram Cloud(WIMI), Snap(SNAP)
Cloud computing: Metaverse ” is a highly interconnected virtual world parallel to the real world. Through the analysis of its underlying technology and seven industrial chains, in addition to VR / AR equipment, cloud computing is also a track with a large market scale and fast growth rate, and the demand side continues to grow, and the future market prospect is broad. Data show that the size of cloud computing reached 209.1 billion yuan, up 56.6%. With the maturity of the three cloud-native core technologies, the related derivative technologies have entered the development and eruption period, the market is active, and the high growth rate is expected to continue to maintain.
Focus targets: Intel (INTC), TSMC (TSM), Qualcomm (QCOM), Alibaba (BABA)
Game plate: Under the background of policy marginal easing and stabilization of fundamental expectations, we are optimistic about the game industry repair under the improvement of industry penetration. With the recent launch of new mobile game products in the second half of the year, in the global expansion speed and the broken circle of high-age users, the game companies will usher in higher predictability, which is still the most important direction of attention at present.
Focus on the target: EA(EA), Activision Blizzard(ATVI), Roblox(RBLX)
Under headwinds such as high inflation and falling consumer demand, and volatile macro conditions such as global supply chain crises, leaving investors with reduced risk appetite, preferring value stocks that provide high and stable profit margins, rather than growth stocks with higher future earnings and record valuations. At present, from the subdivision of the industry, the industrial prosperity of the growing degree of the industry, some industries have shown a rising trend, mainly due to the high growth of the industry, good development prospects can pay attention to the plate leader. Overall, it is expected that in the second half of the year, some subdivided industries will show signs of repair. With the improvement of policy margin, consumption recovery, supply-side clearing rebound, and the decline of cost, the market concentration will increase, and the demand is expected to usher in an inflection point.