On Monday, 7.12, the tech sector has one more chance—keep watching the servers and switches.

A few weekend updates [TaoGuba]
1、SK Hynix CEO said next year’s storage market will be the most supply-constrained in history. With SK Hynix already listed on the US stock market, let’s see for now how much it suppresses tech.
The semiconductor equipment sell-off is a bit too fierce; the tech reaction on Monday is important. For overseas chains, every rebound turns into distribution, so MKS Interconnect needs to hold steady.
As for the storage segment, for now what we mainly see is advanced packaging and testing.
On Friday, Huatian Technology suffered a passive “explosion”; we’ll see if it should be repaired on Monday, and then Longear will need to follow to support. Otherwise, there may need to be adjustments.

2、CCTV Finance: In 2029, China’s procurement of domestic compute power cards will reach 1.44 trillion, giving birth to multiple enterprises worth tens of billions of billions, even hundreds of billions of billions. The State Council executive meeting proposed accelerating the construction of the next-generation communication network and the compute network.
The low-position server direction discussed at Friday’s lunchtime session was stamped directly by weekend policy.
Including news about supernodes as well.
Recently, there have been more and more updates on domestic compute power construction.
Tech is showing a rotation between high and low; for the low end, it comes down to servers and switches.
We will continue to observe Tsinghua Unisplendour and Inspur Information; if they strengthen, then the integrated names are Sugon, ZTE, and Ruijie Networks.

3、Export control on electronic-grade helium. The semiconductor materials side benefits. Wallace Fujikura gas, Jinhong gas, and Guanggang gas.

For tech here on Monday, it can’t open with a gap down. If it doesn’t repair, it’ll look ugly.
In the US stock market, we also haven’t seen any particularly severe sell-off; and Nvidia is still starting to stabilize and rise.
Overseas chains first need to hold steady—here I’m a bit worried that overseas may be dragging domestic down as well.
For the high-position overseas chains and storage, even if they deliver earnings, the market still treats it as below expectations or as already priced in / being realized.
On the contrary, low-position companies with earnings are being continuously recognized.

After commercial aerospace saw a collective peak on Friday, it then pulled back. The core is China Satellite and Aerospace, and aerospace electronics. With successful rocket recovery, commercial aerospace can also start slowly moving into implementation.
Because there are some positions laid out in advance, after short-term realization, I think a batch of core stocks may quietly grind upward into a trend.
I took a satellite ETF arbitrage; in the short term, it’s also low-position tech.

Looking at Friday: for the three core stocks that suffered a passive “explosion”—Huatian Technology, Tsinghua Unisplendour, and Inspur—the repair opportunities on Monday are the key; it can shake, but you can’t chase to make up for a deeper sell-off.
The most likely to show sustained follow-through for low-position domestic compute power is here.
The core right now looks like servers and switches. So it’s Tsinghua Unisplendour and Inspur to keep tracking.
The interim report is also very good; this is industry-trend implementation, with performance starting to be realized, so there’s still room for more expectations.
But if semiconductors come out with a disgusting small double top, then we need to reduce expectations across the board.

I’m waiting for the winds to rise—Straight up to the nine heavens in soaring flight

At the bell