Hexun Investment Advisor Yu Rongzhuo: Hong Kong tech stocks rebound, and A-share AI hardware is not far off?

Midday closing, Hong Kong stocks gradually recovered from a low of -0.5% to rise 1.1%, with the Hang Seng Tech Index up 2%, mainly driven by Xiaomi, Tencent, internet, and semiconductor sectors. The most direct impact on A-shares is in the AI hardware sector, which we have been closely monitoring.

Previously, we focused more on optical chips, but recently we have been paying more attention to PCBs. The main reason is that this week features two important events: Nvidia’s GTC conference and Huawei’s supplier conference and new product launch. These events are expected to influence related sectors.

However, AI hardware faces a challenge: the market surged too rapidly in 2025, with many targets increasing three, four, or even ten times. Therefore, our approach is increasingly focused on overseas markets and domestic localization, which is a key theme. Especially with recent high token consumption—this month may exceed 60 trillion—this will definitely drive more demand for computing power and hardware. At this critical juncture, it remains to be seen how the industry will break through.

Certain segments, such as PCBs, will expand with the launch of Nvidia’s new architecture and products (like M10), creating multiple nodes. From the perspective of A-shares market style, small-cap stocks may perform better in the short term and are easier to activate. But in the medium term, the core stocks like ZTE are still essential to drive the market trend. These points are well-known and require ongoing attention.