The A-share technology growth theme continues to unfold, with AI computing power surging last Friday, the semiconductor sector rallying on Monday, and AI computing power initiating an attack in the morning session today, followed by sectors such as vehicle-road-cloud, photovoltaic, and automotive taking over, with rapid rotation among the sectors. Regrettably, today's trading volume was slightly reduced, and due to the reduced volume, market sentiment dipped at midday, causing the ChiNext index to turn negative. However, funds bought in at the end of the day to speculate on policies from tomorrow's Lujiazui Forum, with all three major indices closing higher. Buying on expectations and selling on news is a consistent characteristic of A-shares; unless tomorrow's policies are unexpectedly strong, it could be a short-term point of realization.

Below are the key news items for today:

According to a report from Caixin, in the face of insufficient supply, TSMC will implement price increases for its 3nm, 5nm advanced processes, and advanced packaging. Specifically, the price increase for TSMC's 3nm foundry services may exceed 5%, and the advanced packaging's annual price increase for next year is expected to be between 10% and 20%. Corresponding to the price increase, TSMC's CoWoS monthly capacity in the third quarter is expected to increase from 17,000 to 33,000 wafers, with the capacity almost fully booked, indicating a strong trend of rising volume and price.

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Last night, the Nasdaq Composite rose by 0.95%, and the S&P 500 increased by 0.77%, with both indices reaching new historical highs. TSMC's stock also rose nearly 3%, setting a new high, with a market value reaching $919.3 billion.

Before the market opened today, Foxconn Technology Group released positive news. According to a report from Caixin, Foxconn has secured an exclusive large order for the key component NVLink switch of Nvidia's GB200, with the order volume being seven times that of the server cabinet. This is not only a new order but also has a gross margin significantly higher than server assembly. Previously, Foxconn had already obtained a significant share of Nvidia's GB200 AI server assembly orders.

Additionally, institutions believe that as the expectations for optical modules become clearer next year, it is time to price in next year's expectations. The CICC Technology Group believes that due to the resonance of domestic and international AIDC demand expectations, the market's outlook for global shipments of 800G and 1.6T next year continues to improve. Mainstream customers originally using 400G are expected to upgrade to 800G solutions, with more large clusters deploying Ethernet 800G solutions. Key customers for 800G, in conjunction with B-series chips and other AI computing chips, are expected to mass-deploy 1.6T networks. The leading manufacturers in this position are expected to continue high growth in their 2025 performance.

Based on the current market's neutral expectations for the global demand for high-speed optical modules next year, looking from a top-down perspective, the P/E ratio corresponding to InnoLight Technology Corporation's pro forma performance for 2025 is less than 18x.Recently, the core AI computing power industry chain, including optical modules and PCBs, has seen significant increases, mainly driven by institutional buying. Institutions are raising their expectations for AI computing power. Today, at the opening, Zhongji Xu Chuang and New Easy Sheng quickly rose, with Zhongji Xu Chuang increasing by more than 5% at one point, and Foxconn closing with a gain of over 4%.

Last Friday, the Wuhan "vehicle-road-cloud" integrated major demonstration project was approved by the municipal development and reform commission, with a registered amount of 17 billion. The related projects are scheduled to start in June. Over the weekend, the news was highly fermented, but on Monday, it showed a general performance with a high opening and a low closing. At the 11th International Intelligent Connected Vehicle Technology Conference (CICV 2024) held today, Miao Changxing, a first-level inspector of the Equipment Industry Department of the Ministry of Industry and Information Technology, stated that the ministry will adhere to the vehicle-road collaborative development strategy and take more powerful measures to promote the high-quality development of intelligent connected vehicles.

Academician of the Chinese Academy of Engineering and Professor at Tsinghua University, Li Keqiang, said at CICV2024 today that the integration of vehicle-road-cloud is an inevitable path of technological evolution, and the trend of integrated development of "vehicle, road, cloud, network, map, and security" is becoming increasingly apparent. Single-vehicle intelligence and vehicle-road-cloud integration are not contradictory at all; single-vehicle intelligence is the foundation of vehicle-road-cloud integration, while vehicle-road-cloud integration is an upgrade of single-vehicle intelligence.

Boosted by the related good news, today's vehicle-road collaboration and intelligent driving-related sectors have seen a wave of limit-ups, with stocks such as Gaoxin Xinxing, Zhonghai Da, Jinyi Technology, and Changjiang Communication all hitting the upper limit.

Li Chao, spokesperson for the National Development and Reform Commission, said at a press conference today that looking to the future and considering all aspects, the demand for new energy vehicles among Chinese consumers will continue to rise. New energy vehicles, especially electric cars, will still maintain a relatively fast growth rate, which has also greatly stimulated the demand for charging infrastructure construction.

Finally, a brief look at the market shows that as of the close, the Shanghai Composite Index rose by 0.48%, the ChiNext Index rose by 0.29%, the Hong Kong Hang Seng Index fell by 0.11%, and the Hang Seng Technology Index fell by 0.33%. The turnover of the two markets shrank to 0.73 trillion, with nearly 4,000 stocks rising.