Breaking Good News! A-shares Afternoon Session Surges, Domestic Computing Power Hits Daily Limit, Pay Attention to Major Event Tonight

Ask AI · Can the domestic computing power surge continue? What are the key driving factors?

The A-shares market is really playing with investors, yesterday after Nvidia’s GTC conference, funds were cashed out, leading to a sharp decline in the optical communication sector and a market crash. Today, the situation reversed: during the early dip, optical communication supported the market, and at midday, New Easy Sheng surged over 10%, driving a tech rebound. It’s clear that recent stock market movements are very challenging—often, when the decline becomes unbearable, investors cut losses and rebound; chasing highs leads to further drops. Many investors probably feel this way.

As for today’s big rally in A-shares:

Yesterday, optical communication was unfairly punished, especially optical modules. We mentioned yesterday that with the easing of CPO suppression, sentiment for optical modules was recovering. Today, Zhongji Xuchuang and New Easy Sheng both directly rebounded;

Last night, US stocks did not sell off; the Nasdaq continued to rebound. Today, Asia-Pacific markets performed strongly, with South Korea’s Kospi rising over 5%, boosting market sentiment;

During trading, Alibaba Cloud announced a price increase, which boosted cloud computing and computing power leasing sectors in A-shares and Hong Kong stocks, also warming market sentiment;

Finally, oil prices also cooperated today, plunging after opening, then rising again after A-shares closed.

I see many friends don’t understand why A-shares have significantly underperformed global markets these past two days. Besides the fact that A-shares are in a “spring turbulence” correction phase, much of it is due to the same reasons as the resilience of A-shares during previous global stock crashes—profit and loss share the same root. Previously, oil prices surged, causing global stock declines, but oil, coal, and new energy sectors soared. These sectors are also the main weights in the Shanghai Composite and ChiNext indices, so the Shanghai and ChiNext performed relatively strongly. However, these days, the “energy” line is being cut, with oil, coal, and chemical sectors falling sharply. The Shanghai Composite is now mainly supported by banks, so it’s weaker overall.

Now, let’s look at today’s major news:

• According to reports, Iraq and the Kurdistan region reached an agreement to resume oil exports via Kurdish pipelines. After the Strait of Hormuz closure forced production cuts, this boosted OPEC’s second-largest oil producer. Oil prices fell back today, with Brent crude futures down 2%, at $97.398 per barrel.

• Nvidia CEO Jensen Huang said that revenue expectations over $1 trillion have strong “visibility.” Huang pointed out that these expectations only include revenue from the core architectures Blackwell and Rubin, not including upcoming new products or new regions and markets. Nvidia plans to allocate 50% of free cash flow to investor returns; stock buybacks and dividends are expected in the second half of the year.

• Reports indicate that US President Trump has confirmed the postponement of his visit to China. He said the meeting with China will take place in about five to six weeks, and the Foreign Ministry responded.

• South Korea’s SK Group Chairman Chey Tae-won stated at Nvidia’s GTC conference that due to systemic bottlenecks in chip production, the global memory chip shortage is likely to continue until 2030. Today, Samsung surged over 7%, SK Hynix over 8%.

The A-shares storage sector also surged strongly, with many stocks like Tongyou Technology, Shenke Da, and Langke Technology hitting daily limits. Baiwei Storage and Demingli continued to hit new highs.

• On March 18, Alibaba Cloud announced a price increase of up to 34% for AI computing power, storage, and related products, mainly due to a surge in token calls. Alibaba Cloud’s MaaS business, Bailian, achieved its highest growth rate from January to March this year. After hours, Baidu Intelligent Cloud also announced price adjustments for AI computing power and storage products.

• Tomorrow early morning, the Federal Reserve’s monetary policy meeting will be held. After recent oil price surges, the Fed’s stance is a key market focus.

Stimulated by these news, the cloud computing and computing power leasing sectors in A-shares and Hong Kong stocks hit the daily limit. Hong Kong’s Kingsoft Cloud surged over 18%, A-shares’ Dongfang Guoxin over 16%, and Halo New Network and UCloud Technology over 13%.

Finally, a quick market overview: at the close, the Shanghai Composite rose 0.32%, the ChiNext index up 2.02%, with trading volume shrinking to 2 trillion yuan; Hong Kong’s Hang Seng Index increased 0.61%, and the Hang Seng Tech Index barely moved up 0.01%.

By industry, telecommunications, computers, electronics, comprehensive sectors, and defense military industries led gains, while oil & petrochemicals, real estate, food & beverages, and steel sectors lagged.

Risk reminder:

Stock markets carry risks; investments should be cautious. This article does not constitute investment advice. Readers should think independently.