The copper-clad laminate index surged 6.19% in a single day. How far can the rebound go?

Ask AI · Behind the Surge in the Copper Clad Laminate Index, How Will AI Computing Power Demand Reshape Industry Patterns?

CNR Beijing, April 7 (Reporter Zou Xuchen) On April 7, the Wind Copper Clad Laminate Concept Index (884789.WI) performed strongly, soaring significantly throughout the day and ultimately closing up 6.19%, becoming a standout sector in the capital market that day.

However, it is worth noting that compared to the recent high point on February 26, the index still retraced 12.9%, indicating that the sector remains in a short-term oscillation and recovery phase, not yet returning to previous high levels. Experts interviewed suggest focusing on industry trends rather than speculating on short-term fluctuations.

Single-day surge of 6.19%, but still down 12.9% from the high

Wind shows that copper clad laminates are made by immersing electronic glass fiber cloth or other reinforcing materials in resin, then coating one or both sides with copper foil and hot-pressing into a sheet. It is the basic material used for making PCBs (printed circuit boards), often called substrate.

From the market performance on April 7, all 13 constituent stocks in this sector showed a broad rally, with no declines, and 6 stocks gained more than 5%. Specifically, Tongyu New Materials (301630.SZ) hit a 20-cent limit-up, Copper Crown Copper Foil (301217.SZ), and Hongchang Electronics (603002.SH) rose by 12.92% and 10%, respectively.

Regarding this sector’s strong rise, well-known financial and tax expert Liu Zhigeng analyzed that three main factors are driving it together. First, the expectation of price increases has been realized, with cost pass-through entering a substantive phase, reflected in raw material cost pressures forcing companies to raise prices, and the industry’s pricing rhythm becoming more unified, entering a “hard increase” mode. Second, demand for high-end products is exploding, with structural growth logic continuously strengthening—on one hand, 5G and AI computing power demand are expanding high-frequency, high-speed PCB markets; on the other hand, the volume increase in automotive-grade markets opens new growth space. Third, market structure continues to optimize, with leading companies gaining higher concentration and further strengthening their bargaining and pricing power.

On the news front, leading copper clad laminate manufacturer Jiantao Laminates (01888.HK) recently issued another price increase letter. Due to recent sharp rises in chemical product prices and tight supply, the cost of copper clad laminates has surged, prompting the company to raise prices by 10% on all sheet materials and PP.

Nankai University finance professor Tian Lihui pointed out that the sector’s abnormal movement is mainly driven by the resonance of three factors. First, the sustained high prosperity of AI computing infrastructure demand, with Nvidia’s GB300 architecture upgrade boosting high-end PCB material specifications, improving order visibility for core substrates like copper clad laminates. Second, copper prices are rising, with LME copper recently surpassing 10,000 yuan per ton, prompting laminate manufacturers to initiate price hikes, and market speculation about profit recovery in Q2. Third, the sector’s prior adjustment was sufficient, with a retracement of over 12% from the February high, and funds are deploying during the earnings vacuum period for a rebound. Essentially, this reflects a dual pricing expectation: optimism about AI hardware supply chain prosperity and cost transfer capability.

Despite the strong performance of the copper clad laminate sector on April 7, with the Wind index closing at 7,172.2 points, it still declined by 12.9% from the stage high of 8,234.07 points set on February 26.

Pang Helin, member of the Information and Communication Economy Expert Committee of the Ministry of Industry and Information Technology, stated that copper clad laminates belong to the computing power-related sector. Previously driven by expectations of a significant increase in AI computing power investment, this sector experienced a surge; but due to excessive gains earlier, it saw a phase of correction. The recent rally may indicate that the short-term adjustment is nearing its end, and the market is re-evaluating the role of computing power investment in driving demand for copper clad laminates. He personally believes that the surge caused by the lobster craze and the rising token call volume has heightened market expectations for sustained high levels of computing power construction investment, thereby boosting confidence in copper clad laminate demand again.

Experts advise focusing on industry trends rather than speculating on short-term fluctuations

Regarding the future trend of this sector, several experts shared their views with CNR Finance.

Liu Zhigeng predicts that in the second to third quarters of 2026, the industry will maintain a strong momentum, with room for further growth. However, from Q4 2026 onward, industry differentiation will intensify, with opportunities and risks coexisting. On the opportunity side, two main drivers will propel growth: first, the acceleration of 5G base station construction, increased demand for AI servers, and the ongoing penetration of electric vehicle intelligence will create sustained demand for high-performance copper clad laminates; second, green products such as environmentally friendly and bio-based resins are becoming new growth points, with data showing that by 2025, the market share of environmentally friendly copper clad laminates has reached 20%.

On the risk side, Liu Zhigeng believes the sector faces two major challenges: one, if future crude oil prices fall and global shipping order recovery progresses, the cost pressures on laminate companies will ease, potentially weakening the sustainability of price increases; two, the midstream manufacturing segment remains under upstream and downstream squeeze, with companies lacking core technologies facing profit margin declines. Overall, future trends will shift from “general rise” to “structural differentiation,” with leading firms capable of high-end material R&D, having automotive-grade certifications, and deep ties with downstream giants showing stronger resilience and growth potential.

Pang Helin warned that the investment outlook for AI computing power remains uncertain, with significant industry development risks. He pointed out that many investment banks at the start of the year issued optimistic forecasts, expecting tech giants to invest $2.5 trillion in AI computing power over the next five years. But from a revenue and expenditure perspective, the sustainability of such massive investments is questionable—expected income from computing power investments over the next five years does not match the current scale of investment. Notably, several events deserve attention: first, OpenAI announced the closure of the Sora business due to unprofitability; second, Oracle launched layoffs; third, Oracle’s data center in the Middle East was damaged.

Further analysis by Pang Helin indicates that copper clad laminates, as upstream supporting materials in the AI computing power industry chain, have demand closely tied to the development of downstream computing power sectors. Currently, the expansion of AI computing power is constrained by changes in credit environment. If monetary tightening occurs, the industry may face shocks, which could chain-react to demand for copper clad laminates.

Tian Lihui stated that the short-term trend of the copper clad laminate sector may continue oscillating and recovering, but the height of the recovery will be limited. Short-term factors include ongoing geopolitical uncertainties in the Middle East, with global equity markets expected to remain highly volatile, and market funds being cautious. Although the logic of price increases supports the sector, overall market volatility may cause short-term disturbances. The medium- and long-term trend depends on sustained demand and industry structural differentiation. The core driver is whether AI computing power demand can maintain rapid growth. Additionally, the sector should watch for downward risks in Q1 earnings reports—if price increases lag behind cost rises, profit margins will be further pressured, reducing sector valuation.

Tian Lihui emphasized that from a medium- to long-term perspective, high-end scenarios such as AI servers and high-speed switches will provide core incremental growth, but investments should focus on leading manufacturers capable of high-frequency, high-speed material mass production. A broad rally across the sector is unlikely; instead, focus on industry trends rather than short-term speculation.