On August 20, the A-share market bottomed out and rebounded throughout the day, with the Shanghai Composite Index, Shenzhen Component Index, and STAR 50 Index all hitting new annual highs. In terms of sectors, chip stocks surged in the afternoon, with Cambricon’s stock price breaking through the 1,000 yuan mark, becoming one of only two A-share stocks priced above 1,000 yuan. Centec Communications hit the 20% limit up, while more than ten stocks including Xingye Shares, Hanbell Precision Machinery, and Yue Ling Shares collectively reached the daily limit.
On the news front, DeepSeek issued a notification in its official WeChat group last evening, announcing that its online model has been upgraded to V3.1, with context length extended to 128k. According to tests, the new version shows a 43% improvement in multi-step reasoning compared to the previous version, providing more accurate solutions for fields such as mathematical computation, code generation, and scientific analysis.
CITIC Securities believes that AI will remain the biggest driver of growth for the semiconductor industry. On one hand, demand for cloud AI continues, while on the other, terminal AI applications are expected to accelerate. Moreover, Chinese semiconductor companies are likely to benefit significantly in the subsequent development of the AI industry. From the perspective of listed companies, the investment logic can be divided into two main lines: domestication for the cloud and downstream incremental growth for the terminal.
(Disclaimer: The content is for reference only and does not constitute investment advice. Investors proceed at their own risk.)
