The semiconductor sector saw a significant rise today, with an increase of 4% to 5%, attracting widespread market attention. Behind this surge are both the support from policies and the impact of changes in market dynamics.

Looking back at 2018, the domestic semiconductor industry faced severe challenges. However, thanks to strong government support, including various subsidies and tax incentives, the industry experienced rapid development. Yet, today's surge is not solely due to favorable policies.

Recently, there have been reports that the government will conduct a security review and antitrust investigation of Nvidia, and ask domestic technology companies to explain the reasons for continuing to purchase Nvidia chips. This move has become a key factor in stimulating the rise of the AI and semiconductor sectors. In addition, the government has begun antitrust reviews of low-end chips from the United States, creating profit growth opportunities for domestic low-end chip manufacturers.

In the face of so many positive news, investors can't help but ask: should they continue to increase their investments in the semiconductor sector? From a valuation perspective, the current level has reached the 99.93 percentile, even exceeding the peak in 2021. In terms of stock prices, it has also approached the highest point of 2021.

For investment decisions, investors need to rely on their personal judgment. If they believe that the semiconductor index is likely to break through 15,700 points with an increase of over 20%, then they can consider entering the market. Conversely, if they think the current valuation is too high and the risks are significant, they can turn their attention to other undervalued sectors.

Regardless, the development trend of the semiconductor industry is worth continuous attention. With the dual push of policy support and market demand, the industry may continue to maintain a strong growth momentum. However, investors should also be cautious of the potential risks brought by high valuations and make rational investment decisions.