CITIC Securities says the July 2026 pullback has increased the allocation case for the US semiconductor-equipment sector. The report expects the AI-driven equipment upcycle to continue at least through 2028 and warns of a persistent market expectation gap over large downstream customers’ capex for 2027–28. On supply, vendors and upstream suppliers are expanding capacity against orders, supporting equipment deliveries. The firm recommends focusing on equipment vendors with rising subsegment share

CITIC Securities says the July 2026 pullback has increased the allocation case for the US semiconductor-equipment sector. The report expects the AI-driven equipment upcycle to continue at least through 2028 and warns of a persistent market expectation gap over large downstream customers’ capex for 2027–28. On supply, vendors and upstream suppliers are expanding capacity against orders, supporting equipment deliveries. The firm recommends focusing on equipment vendors with rising subsegment share, larger memory exposure, or distinctive demand drivers.