Last Friday, I first pointed out the bottom of the sector; the significant drop in volume contains excellent opportunities! Then over the weekend, I provided valuations for blue-chip stocks: Is Nvidia’s chain entering the strike zone again!? On Tuesday, there was a significant rise, with leading stocks like Zhongji Xuchuang showing restraint, but I remain optimistic about the subsequent trends: What has caused the AI hardware to surge? On Wednesday, Zhongji Xuchuang hit a new high, prompting a reminder about Xinyi Technology, Shenghong Technology, and Industrial Fulian, who are relatively restrained, but I remain cautiously optimistic about the market outlook: Zhongji Xuchuang surged by 13.89%, what is the current market temperature? On Thursday, Xinyi Technology, Industrial Fulian, Cambridge Technology, and Shenghong Technology continued to advance; The core focus now is:(1) Most importantly, the market needs to see increased volume; otherwise, the motors will burn out and cannot drive the market. Currently, the volume is not optimistic! The leading stocks Zhongji Xuchuang and Yuanjie Technology are already showing signs of fatigue, which is related to insufficient volume.(2) Whether the sector can have more stocks break through the 60-day moving average. If the sector can collectively break through the 60-day moving average, I will remain optimistic about the future! In fact, the fundamental logic behind this round of bottoming is that many stocks have fallen by 30-40% over the past 2-3 months of sector adjustment, and based on the 2026 performance, they have already reached an initial space of 40-100%. The specific forms are as follows:(1) First-tier leaders: ① The optical chip companies Yuanjie Technology, Shijia Photonics, and Changguang Huaxin, due to their extreme scarcity; the 1.6T optical module leader Zhongji Xuchuang, has the strongest logic; Zhongji Xuchuang, Tianfu Communication, Yuanjie Technology, and Changguang Huaxin are the core beneficiaries of the 1.6T market!! ② Google OCS stocks, due to their new concept, combined with Google’s breakthrough progress, are considered first-tier; Google OCS is a core beneficiary!! Thin-film lithium niobate + OCS switches, can they create two optical storage technologies? Changfei Optical Fiber, Luxshare Precision, Dekor, Lingyun Optical, Tengjing Technology, Juguang Technology, Huagong Technology, Tiantong Co., Ltd., Fuzheng Technology, Optical Storage Technology, Zhongji Xuchuang!(2) Second-tier: Xinyi Technology, Industrial Fulian, Shenghong Technology: pure-blood leaders, have been hit for various reasons, and I will focus on whether they can stabilize above the 60-day moving average. If they can collectively rise above it, then we can expect that funds will start to position for next year, which would not be a one-day market, and it would be worth higher expectations.(3) Third-tier: The third tier has been very weak recently, with Taichengguang leading the decline, being the first to break below the six-month line and the annual line, but now it is leading the rise again; we will see if it can stabilize:
With Nvidia’s $5 trillion market cap, which new billion-dollar chains will emerge? Yinvike, Chunzong Technology, Maigemi, Jianghai Co., Ltd., Fangzheng Technology, Yuanjie Technology, Robot Technology, Defu Technology, Longyang Electronics! Shijia Photonics, Taichengguang, Kexin Innovation Source, Chuanhuan Technology, Zhongshi Technology, Dayuan Pump Industry, Gaolan Co., Ltd., Jianghai Co., Ltd., Maigemi, Longyang Electronics, Defu Technology, Fangzheng Technology, Jingwang Electronics! Because it is the end of the year, and the market has not effectively increased in volume, I have maintained a cautiously optimistic attitude, watching while engaging in trading. I have been closely following the AI hardware sector, including the Nvidia supply chain in North America, the Google supply chain, the Tesla supply chain, the Apple supply chain, and the domestic computing power sector, and I will periodically update the valuations of sector stocks. I also adhere to a value investment philosophy, with all stock selections and strategies closely revolving around value. For more industry trends and core stock valuation discussions, feel free to follow:
Disclaimer and Risk Warning: The above content is collected and organized from the internet, and under no circumstances does it constitute any investment advice to anyone. Please do not use it as a basis for investment. The individual stocks mentioned in the text are only for static review of technical, fundamental, and news aspects, and are not recommendations; please do not use them as investment references. The market has risks, and entering the market requires caution.