Yesterday, the trading volume of the two markets reached 2.4 trillion yuan, a decrease of 180 billion, yet the market remains hot, with over 3500 stocks in the green.
Moreover, the main index continued to break new highs yesterday, opening low and rising high, with the index rebounding after touching the 5-day moving average, continuing to set new highs not seen in nearly a decade!
This current market trend is different from previous bull markets, characterized as a typical slow bull market, reminiscent of the American slow bull, with the index steadily rising along the 5-day moving average!
Yesterday, I saw a piece of data indicating that household deposits decreased by 1.1 trillion yuan in July, a year-on-year increase of 780 billion yuan,while deposits from non-bank institutions increased by 2.14 trillion yuan, a year-on-year increase of 1.39 trillion yuan! These are all incremental gains!
In July, there were 1.9636 million new accounts opened in the A-share market, an increase of 317,200 accounts compared to June’s 1.6464 million, a nearly 20% month-on-month increase.
Already, 2 million new investors have rushed into the market, with those born in the 90s and 00s accounting for 60%! They are particularly fond of emerging technologies and innovative industries!
The current market is a structural bull market, with the main focus still on technology, including AI hardware, robotics, semiconductors, and consumer electronics!
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High-end AI hardware is facing divergence, but low-end consumer electronics, large consumption, and semiconductors continued to take the lead yesterday, becoming the new market hotspots.
Yesterday, AI liquid-cooled servers also received positive catalysts; according to reports, Intel’s Universal Quick Connector (UQD) interconnect alliance has officially been established, which will lead to a recovery in the liquid cooling sector.
In consumer electronics, the main focus is on the upcoming release of the iPhone 17,which has entered large-scale production. Foxconn, as the main manufacturer for Apple’s iPhone, is currently ramping up hiring at its Zhengzhou plant!
The consumer electronics sector tends to see fluctuations every autumn, mainly due to the increase in new product launches from companies like Apple, Huawei, and Xiaomi, which will sustain for several months.
Yesterday afternoon, semiconductors became the mainstay of market support, with news of significant technological breakthroughs in indium phosphide (InP) materials from the Jiufengshan Laboratory, which greatly stimulated the chip sector.
Indium phosphide (InP) is a core material in fields such as optical communication and quantum computing. The breakthrough in 6-inch InP processing is expected to reduce the cost of domestic optical chips to 60%-70% of the 3-inch process. With the surge in demand for AI large model training and inference, optical chips, as core components for data transmission, are crucial for supporting computing power infrastructure.
Primarily, NVIDIA’s computing power is currently at a high level,while domestic computing power is currently at a low level, offering better cost performance.
Last night, there was also news regarding stablecoins,indicating that China is considering allowing the use of RMB-backed stablecoins for the first time to enhance the internationalization of the RMB!
Stablecoins are extending from the crypto ecosystem to real-world applications, with downstream application scenarios expanding from cryptocurrency trading to cross-border trade and real-world asset (RWA) transactions.
Globally, the framework system is gradually improving, and the issuance scale is growing rapidly. As of last weekend, the global issuance scale of stablecoins approached 280 billion USD, an increase of over 10% compared to 250 billion USD in June.
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There are many subdivisions in consumer electronics, such as AI phones, AIPC, foldable screens, and AI glasses, which are all relatively new products.
In these subdivisions, there are mobile screens, components, batteries, cooling modules, chips, etc.
Today, let’s learn about the dark horse in SoC chips—Allwinner Technology‘s logic!
Allwinner Technology is a leader in the domestic audio and video SoC main control chip field, and has also achieved significant market performance in the Internet of Things sector. Its smart IoT SoC chip revenue ranks among the top in the A-share market, with products widely used in smart hardware, educational tablets, in-car entertainment, and more.
At the same time, it is actively embracing the RISC-V architecture and benefiting from the domestic substitution wave, opening up growth space in new fields such as automotive electronics and industrial control.
Main logic:
1. Allwinner’s traditional strengths and fundamentals lie in smart terminal application processors (APoC). These chips can be understood as the “brain” of smart devices, integrating CPU, GPU, NPU, video codecs, audio processing, and various interface controllers.
2.In the smart home and Internet of Thingschip domain, it ranks second, especially in collaboration with Alibaba’s Tmall Genie, developing smart vision and automotive-grade chips based on the Xuantie C910 and C906 cores, which has accelerated the rapid development of the company’s RISC-V product line!
3. Edge AI vision chip V853:The new generation of edge AI vision chip V853 has been mass-produced and launched, supporting AI vision applications including machine vision. V853 adopts several innovative technologies from Allwinner, integrating the new generation of starlight-level image quality engine to provide professional image quality for customers.
4. VR chip: The VR9 virtual reality dedicated chip has been released, featuring powerful VR video processing capabilities, built-in low-latency acceleration module Portal 1.0, and a dual-engine direct drive dual-screen system, achieving a breakthrough in panoramic 6K decoding and playback capabilities, and supporting AI voice control, 3Dof controllers, and expanded spatial positioning.
5. Automotive-grade smart cockpit chip: Allwinner began laying out automotive-grade chips in 2014, accumulating technology over 7 years. By the end of 2020, the company’s automotive-grade chip products had shipped over one million units in the OEM automotive application market, with the T series chips adopted by well-known domestic automakers such as SAIC, FAW, and Changan.
The latest SoC chip AC8015 achieved mass production in 2021, suitable for smart cockpit and IVI systems based on Hypervisor. The Allwinner T7 chip is the first automotive-grade SoC chip in China, launched in 2018, supporting multifunctional integration for ADAS and DMS smart driving.
6.AIoT field layout: Collaborating with top customers, a new generation of smart speaker platform has been launched to increase market share.
In the smart vacuum robot field, Allwinner has developed a high-performance universal chip platform and closely collaborates with industry chain partners in the smart home appliance market to promote the popularization of smart home products. Allwinner is also committed to the smart vision market, launching a new generation of AI vision chips and collaborating with industry leaders in the smart security field.
7. AI chip products:Launched AI chip products with NPU computing power reaching 2-3 TOPS; in terms of products, NPU and AIPU acceleration units have been integrated into more chip products. Allwinner’s Vice President of Marketing, Hu Dongming, mentioned that the planned AIPU is ‘hardened AI, focused on scenarios and modules,’ with plans for 6-8 TOPS, considering different scenarios.
8. In terms of performance, it is expected that the net profit attributable to the parent company in the first half of 2025 will be between 156 million and 171 million yuan,an increase of 31.02% to 43.62% compared to 119 million yuan in the same period last year.
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That’s all for today. Likes, views, and shares are the best support for me.
Special statement: All content in this article is personal insights from the author and does not constitute operational guidance for others. The companies mentioned are based solely on static analysis of the industry and company fundamentals, serving as personal investment notes, not dynamic trading guidance. The stock market has risks, and investment should be cautious; please take risks at your own discretion.
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