Great Wall Fund's Zhao Fengfei: Tech Rally Likely to Continue into 2026, Market Style May Turn More Balanced

As 2025 draws to a close, the technology industry has experienced numerous changes, driving tech stocks to become the main theme throughout the year. At year-end, market fluctuations in sectors like artificial intelligence, semiconductors, and new energy have significantly amplified. With renewed debates over the AI bubble, the investment trends for the coming year have become a focal point for the market.

Amidst the fog, the Great Wall Fund’s 2026 Investment Strategy Conference arrives as scheduled. Zhao Fengfei, manager of the Great Wall Intelligent Industry Fund, has been deeply involved in the “Technology+” field for many years. During the strategy meeting, he discussed key issues in tech investment in depth.

Regarding the performance of tech stocks in 2025, Zhao Fengfei summarized it as “astonishing.” He believes that the core driving force behind this market trend is global technological transformation and China’s breakthrough advancements in the tech industry. The sector rotation throughout the year was clear, with each wave of gains supported by solid industry logic—an overall improvement in China’s technological strength driving the market.

Will the 2026 tech rally continue? This is the most pressing question for investors. Zhao Fengfei thinks the trend is likely to persist, but market styles will become more balanced. The key to whether the rally can sustain depends on whether industry investments pause. Currently, leading cloud providers domestically and abroad are still heavily investing, and this rigid capital expenditure is a strong foundation for the resilience of tech stocks. In the capital markets, this continued investment naturally supports the ongoing trend.

Based on this, Zhao Fengfei believes that next year’s tech stocks will show balanced development across three dimensions:

First, the balance between domestic and overseas computing power in the compute sector. Over the past few years, overseas computing stocks have seen significant gains, making further large-scale increases more difficult. Meanwhile, domestic computing power is entering a critical breakthrough period, with revenues and profits set to surge, potentially accelerating breakthroughs.

Second, internal structural balance within the AI field. Over the past three years, market investment has focused on infrastructure companies related to computing power and other foundational sectors. After long-term deployment, infrastructure construction has become increasingly complete, and conditions for large-scale application breakthroughs are maturing. In 2026, AI applications are expected to see substantial breakthroughs.

Third, within the tech sector, a more balanced development between AI and non-AI fields is anticipated. AI has been a mainstream topic in the industry and has performed impressively over three years; meanwhile, new sectors like commercial space and quantum computing could also stage stage-specific breakthroughs if new industry changes occur.

Regarding specific sub-sectors in the tech industry that Zhao Fengfei favors, he clearly states that three major directions will reach key milestones in 2026. First is solid-state batteries, which are expected to enter small-scale mass production, initiating technological iteration in the power battery field. Second is commercial space, where recoverable technology is likely to achieve significant breakthroughs, solving capacity bottlenecks in satellite internet construction and paving the way for large-scale applications like space computing. Third is AI applications; as model performance improves, AI Agents will reach usability thresholds and become vital tools for empowering industries. Looking further ahead to the “14th Five-Year Plan” period, the potential of quantum computing should not be underestimated.

Zhao Fengfei notes that once quantum computing achieves a commercial breakthrough from 0 to 1, it will trigger a chain reaction: existing encryption mechanisms in cryptocurrencies could be rapidly cracked, forcing the entire industry to reshape cryptography systems and driving explosive growth in cybersecurity. Additionally, quantum computing will solve scientific computing problems that classical computers cannot handle, becoming a super engine for industry-wide progress.

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