Surged 30%! Just experienced a straight-up rally! Chip industry news brings positive momentum!

Semiconductor sector, surging strongly!

This afternoon, the A-share semiconductor sector experienced a significant rally. Many stocks such as Cambrian, Jingyi Equipment, Changchuan Technology, Changdian Technology, Jingfang Technology, and Blue Arrow Electronics soared sharply. Among them, Cambrian’s gains approached 10% at one point.

Meanwhile, in the South Korean stock market, semiconductor concept stocks also collectively surged, with Hanmi Semiconductor soaring nearly 30%. Samsung Electronics and SK Hynix both rose over 7%, reaching new highs.

On the same day, the Korea-China Semiconductor ETF surged 9.64% with high trading volume, with a single-day turnover of 8.7 billion yuan and a premium rate of 20.98%.

Market analysts pointed out that AI is leading the semiconductor industry into a new high-growth cycle. Overnight, Nvidia’s earnings exceeded market expectations, demonstrating that the global AI boom remains strong. This is positive news for the semiconductor industry.

Collective Rally

In the morning session, the A-share semiconductor sector rebounded from lows. In the afternoon, the sector suddenly surged, with the sector index’s gain expanding from 0.60% to over 2%, with the highest increase approaching 2.5%.

Cambrian led this afternoon’s rally. The stock’s early gains were only about 1%, but later, heavy buying pushed the price sharply higher, with gains approaching 10%. Other semiconductor concept stocks that rose in tandem with Cambrian included Jingyi Equipment, Nake Equipment, Yongxi Electronics, Changchuan Technology, Changdian Technology, Jingfang Technology, Blue Arrow Electronics, and Mooresoft.

The South Korean semiconductor sector also surged significantly in the afternoon, with Hanmi Semiconductor rising nearly 30% at one point. By the close, Hanmi Semiconductor was up over 28%, Samsung Electronics increased 7.13%, and SK Hynix rose 7.96%.

The strength of these stocks is related to Nvidia’s better-than-expected earnings report. Nvidia’s earnings can influence global financial markets not only because it is the world’s most valuable company and the largest component in the S&P 500, but also because it benefits from the rapid development of AI-related technologies. Since last year, AI has become the core driver pushing the semiconductor industry into a high-growth cycle.

Data shows that in the fourth quarter of fiscal year 2026 ending January 25, Nvidia’s revenue soared 73% year-over-year to $68 billion, surpassing Wall Street analysts’ average estimate of $66.1 billion; Nvidia also forecasted that revenue for the first quarter of fiscal year 2027 would reach $78 billion, again exceeding analysts’ expectations of $72.8 billion.

Nvidia CEO Jensen Huang stated that demand for Nvidia chips remains “surging.” During a conference call, he said, “Global demand for tokens is experiencing exponential growth. I think we all see this—six years ago, even in the cloud, our GPUs were completely exhausted, and prices are rising. The era of artificial intelligence has arrived, and it will not reverse.”

Analysts believe that Nvidia’s strong performance helps alleviate some market concerns about whether the AI boom is real and whether large investments will pay off.

Thomas Matthews, head of Asia-Pacific markets at Kato Macro, noted in a research report on the 26th that the recent strong profit growth emphasized in Nvidia’s earnings is a key reason why the S&P 500 is expected to perform well in 2026. He predicts the S&P 500 will reach 8,000 points by the end of 2026.

Two other news items also boosted the semiconductor sector: First, SK Hynix, a major Korean memory chip manufacturer, announced plans to invest 21.6 trillion won (about $150.7 billion) in a new chip production line in Yongin City, South Korea, by 2030 to meet growing semiconductor demand. Second, industry insiders revealed that Samsung Electronics has achieved an 80% yield for 1c DRAM and expects to reach around 90% by May; the yield for 1c DRAM-based HBM4 is also close to 60%.

Price Hikes

Recently, many domestic and international power semiconductor companies have announced price increases or official price adjustment plans, including major global firms and local companies.

Shenwan Hongyuan pointed out that the global semiconductor industry is entering a systematic price hike across all segments, from upstream wafer manufacturing and packaging/testing capacity quotes, to midstream storage chips, MCUs, analog chips, power semiconductors, and downstream products. This includes passive components like resistors and inductors, connectors, and other core materials, all simultaneously undergoing price restructuring.

These brokerages noted that the current electronics supply chain is experiencing a “three-pronged” systematic price increase: a boom-driven increase (storage, CPUs, ABF substrates), cost-push inflation (CCL/laminate/copper foil, passive components, packaging/testing/contract manufacturing), and supply contraction (niche storage, mature foundry/power/analog segments).

Dongguan Securities stated in its research report that, based on the performance or forecasts of listed companies, the overall prosperity of the semiconductor industry is rising, but with segmentation differences. AI significantly drives demand for compute chips, storage chips, and wafer foundry services, while non-AI-related segments are recovering mildly. Some segments, such as consumer electronics, face cost increases due to AI-driven resource competition, putting overall industry prosperity under pressure.

Looking ahead, Dongguan Securities recommends continuing to focus on investment opportunities in high-growth segments driven by AI, such as computing power, storage, advanced packaging, advanced process wafer foundry, and semiconductor equipment and materials.

CITIC Construction Investment is optimistic about the semiconductor equipment and component sector. The firm recently pointed out that the space for semiconductor equipment and parts is broad, and domestic substitution is accelerating under foreign restrictions.

Semiconductor equipment parts account for about 50-55% of the total cost of semiconductor equipment. With the current AI-driven global semiconductor cycle, the market for semiconductor equipment parts is expected to reach $85.8 billion by 2027.

CITIC believes that as domestic suppliers continue R&D breakthroughs and increase production, investment should focus on specific categories: on one hand, low domesticization rate segments such as EFEM, robotic arms, vacuum pumps/molecular pumps, valves, electrostatic chucks, RF power supplies, MFCs, and parts related to lithography machines (dual-workpiece stages, immersion systems, optical components); on the other hand, categories with smooth domestic progress and gradually releasing performance, such as metal parts for machinery and gas delivery subsystems like GAS BOX.

(Source: Securities Firms China)