The Middle East situation eases combined with policy benefits, domestic chip stocks are "going crazy"(Related stocks)

April 8 at the start of the trading day, driven by news that the Middle East has agreed to a two-week ceasefire and that the Strait of Hormuz will reopen for two weeks, global markets rebounded sharply. In China’s A-share market, a broad-based upward trend once again emerged, and the AI technology sector stood out.

Among them, domestically made chips saw strong performance early in the session. Within the sector, almost all individual stocks were up, with Pingzhi Information sealing a 20cm limit-up. Daya Shares, Litong Electronics, Mingtang Opto-Magnetic, and other 11 stocks hit limit-ups. Zhenlei Technology, Yarui Electronics, Xiaocheng Technology, and Changxin Bochung rose more than 10%, while the trillion-yuan leader Beifang Huachuang and ON Semiconductor (Zhongwei Company) rose more than 9%. Many others, including China Resources Micro and Jept, collectively surged higher.

A major new set of rules on the security of industrial and supply chains has been issued

According to a report by Xinhua News Agency, Premier Li Qiang of the State Council recently signed State Council Order No. 834, releasing the “Regulations of the State Council on the Security of Industrial and Supply Chains,” which took effect from the date of promulgation. This is China’s first specialized administrative regulation aimed at safeguarding the security of the country’s industrial and supply chains, marking a milestone.

In response to issues such as “bottleneck” core technologies in key areas like integrated circuits and industrial machine tools, the “Regulations” require the formulation of a list of key areas, the development of tangible inventory and capability reserves in key areas, increased efforts in research and development for technologies, equipment, and products, and the improvement of the ability of industrial and supply chains in key areas to withstand risks. This institutional arrangement can guide various resources to concentrate in key areas and help drive major breakthroughs in tackling key core technologies.

For risks facing China’s industrial and supply chains—such as cut-off supply, price fluctuations, and disruptions to logistics—the “Regulations” establish a risk monitoring system for industrial and supply chains and an emergency management system. It involves identifying risks, promptly issuing early-warning information, and implementing emergency response measures such as emergency dispatch and tapping into reserves, to quickly deal with sudden risks and ensure that the industrial and supply chains in key areas remain stable and operate smoothly.

Wang Minghui, head of the Second Research Office under the Industrial Economics Research Department of the Development Research Center of the State Council, said that the issuance of the “Regulations” is an important measure to effectively prevent, defuse, and manage security risks in industrial and supply chains, and to enhance resilience and safety levels. It is also a key step in China’s response to the U.S. and Western efforts to contain and block China—actively arranging for international space and shaping the external environment.

DeepSeek V4 fully adapts to domestically made chips

According to a report by Jiemian News, DeepSeek V4 has already completed adaptation and optimization based entirely on Huawei Ascend chips. Unlike the previous convention in which AI models were prioritized for adaptation to NVIDIA, DeepSeek places domestic chip manufacturers in a priority position this time and has made extensive adjustments and rewrites to the model’s underlying code. Meanwhile, to meet the needs for the V4 cloud service launch, domestic tech giants have already placed orders in advance with domestic suppliers for tens of thousands of chips.

Analysts noted that this round of DeepSeek V4’s comprehensive “chip swap” aims to achieve complete independent controllability from hardware to software. It marks that domestically made AI chips are accelerating the transition from “usable” to “good to use,” and it also implies that construction of domestic AI servers will speed up and volume expansion in demand will become clearer as certainty increases alongside the expansion of domestic compute-power investment.

In Guohai Securities’ view, the chip design field is entering a crucial turning point in the era of AI inference and intelligent agents, with compute-power demand showing explosive growth. As heterogeneous computing architectures become more widespread and specialized chips such as the LPU are introduced, chip design companies need to focus on improving efficiency and system-level coordination. Securing technical barriers in highly favorable segments such as high-end AI servers, storage, and compute-power leasing will be crucial.

An earlier research report from Industrial Securities pointed out that domestic leading technology companies have continued to increase capital expenditures and accelerate local large-model iterations, driving ongoing improvements in the performance of domestically made chips and building an ecosystem of domestically developed and independently controllable solutions. As AI penetrates terminal scenarios comprehensively and becomes the main line, domestic carriers and cloud providers are expected to further increase capital expenditures. Domestic substitution in the chip supply chain is expected to deepen, and domestic compute-power providers as well as upstream semiconductor equipment and materials still have broad room for growth.

Institutions are “closely watching” multiple concept stocks

The concept-sector display on East Money shows that, in the current A-share market, as many as more than 300 stocks are related to the domestically made chip concept, with a combined total market value exceeding 13 trillion yuan. BYD, SMIC, Midea Group, and Hygon Information all have market caps above 500 billion yuan. Companies such as Cambricon, Beifang Huachuang, Moore Threads, and Mobisun Co., Ltd. follow closely behind.

Since the start of this year, about 40% of the domestically made chip concept stocks have recorded price gains. Litong Electronics surged 164% to rank first. Zhili Fang rose nearly 1.2 times to take second place. BOWAY Memory, Xiaocheng Technology, also rose nearly 1 time. Among 10 stocks—including Changguang Huaxing, Purun Shares, Simcere, and Yuanjie Technology—their gains over the period are all more than 70%.

In terms of capital, data from East Money’s Choice shows that in the past week, as many as 50 domestically made chip concept stocks received net purchases of financing exceeding 8B yuan. Among them, Cambricon and Aichip Semiconductor received intensive buying from leveraged investors of 291 million yuan and 269 million yuan respectively. Six stocks, including Hastech T&CM, BOWAY Memory, Shenzhen Circuit, and Yuanjie Technology, all saw leveraged funds add positions of more than 100 million yuan.

In terms of institutional attention, from the beginning of the year to date, 36 domestically made chip concept stocks have received 3 or more rounds of institutional research visits. China Resources Micro has the highest level of institutional attention, with as many as 16 research visits within the year. Guoji Jinggong also received 11 institutional research visits. Thirteen stocks, including Jie Mei Technology, Dongxin Shares, Jiangbo Long, and Huatong Electronic, had institutional research visits numbering between 5 and 8 times.

If ranked by the number of institutions that conducted research visits, seven stocks—Aubie Zhongguang, Allwinner? (Lanzhi Tech?), China Resources Micro, and ON Semiconductor (Zhongwei Company)—all had more than 200 institutions researching them. Seventeen stocks, including DiKe Shares, BOE A, and ON Semiconductor, also attracted more than 100 institutions to cluster in research visits.

(Source: East Money Research Center)