[UBS Releases SemiBytes Bulletin, Semiconductor Sector Enters Divergence Phase] According to Trend Research, UBS released the SemiBytes bulletin on July 20, 2026, assessing that the semiconductor sector is transitioning from broad-based growth to a phase of sharp divergence, with the AI-driven rally continuing. The release of Kimi K3 has spurred the scaling up of open-source models, with longer context windows driving demand for HBM and storage, making NVIDIA the biggest beneficiary. Micron's cumulative free cash flow over the next few years is expected to exceed $400 billion, and the theoretical buyback ratio could surpass 40% once the buyback ban is lifted. Divergence within the analog chip sector has intensified, with AI-exposed stocks commanding a 42x P/E premium. Lam Research, Broadcom, Seagate, Micron, and AMD are in an extremely crowded long position.