Pre-market highlights
1. The NASDAQ closed up 1.18%, and the storage and optical communication sectors continued to strengthen
Type: Market Sentiment Impact: Positive
The three major US stock indices closed up collectively. The NASDAQ rose 1.18%, the S&P 500 index rose 0.6%, and the Dow rose 0.03%. The storage and optical communications sector continues to strengthen, with Western Digital up more than 6%, SanDisk and Seagate Technology up more than 3%, Coherent up more than 6%, Lumentum up more than 5%, and Mywell Technology up more than 4%.” Most of the “Big Seven Tech Companies” rose, with Tesla up 4.04%, Amazon up 1.61%, Apple up 0.93%, Nvidia 0.90%, Microsoft down 0.24%, and Meta Platforms down 1.64%. Oracle expanded cooperation with Google, Intel, Nvidia, etc., with Oracle up 3.56%, Intel up 3.6%, and Cerebras up more than 10%.
2. Shanghai issued a next-generation intelligent manufacturing action plan with a target scale of 200 billion yuan for the equipment industry in 2028
Type: Industry sentiment Impact: Positive
The Shanghai Economic and Information Technology Commission issued the “Shanghai Action Plan to Accelerate the Development of Next-Generation Intelligent Manufacturing”. According to the plan, by 2028, the scale of the new intelligent manufacturing equipment industry to promote AI will exceed 200 billion yuan, and the scale of the intelligent manufacturing system integration industry will reach 100 billion yuan. The plan requires the development and promotion of physical AI equipment, the cultivation of single-point implementation service providers such as corpus services, digital twins, AI agents, etc., as well as system integrated service providers with the ability to penetrate processes, equipment and software throughout the entire domain.
3. TSMC plans to increase the price of CoWoS advanced packaging by 10% to 20%
Type: Industry Sentiment Impact: Neutral
TSMC is considering increasing the price of CoWoS advanced packaging services by 10% to 20%. As demand for AI chips expands from GPUs to server CPUs and customized AI chips, advanced packaging production capacity is tightening, and related cost pressure may be transmitted to chip design companies. CowOS is TSMC's advanced packaging production capacity chain for AI chip orders.
4. A number of companies disclosed a sharp year-on-year increase in net profit in the storage and PCB industry chain in the three-quarter report
Type: Industry Sentiment Impact: Neutral
The three-quarter report has entered a period of intensive disclosure. The net profit disclosed by many companies in the storage and PCB industry chain increased sharply year on year: the net profit of Junzheng Co., Ltd. in the third quarter increased 2595% year on year and 61% month on month, and the sales revenue of the memory chip product line continued to increase sharply; South Asia Materials increased 1296% year on year and 218% month on month; Jin'an Guoji increased 1031% year on year and 105% month on month; Fangzheng Technology increased 327% year on year and 80% month on month, and the average sales price and sales volume of the PCB business increased. Wuliangye's net profit for the third quarter fell 48% year-on-year during the same period. The company said market demand was weak and product sales declined.
Investment calendar
Oct. 28-Oct. 29 Federal Reserve Interest Rate Meeting
Institutional views
1. Huafu Research: Domestic demand recovery is limited, service consumption is lackluster, real estate “Silver Ten” falls short of expectations, and external demand is structurally resilient
2. Guojin Securities: Stock ETFs and Northbound capital have clearly returned, and the two financings have continued to have a large net outflow
3. Huayuan Research: Physical AI opens the next stop, extends the general model to the physical world, and accelerates the iterative evolution of embodied intelligence
Positive and negative outlook
1. Federal Reserve FOMC Announces Interest Rate Decision
Type: Policy Focus
J.P. Morgan Asset Management Michelle: The Federal Reserve will not raise interest rates this week, but it may release hawkish signals in December. The return on US bonds is expected to reach 7% to 8% in the next 12 months
2. Physical AI driver end side hardware upgrade
Type: Hot Market Discussion
Guojin Securities: AI enters reality, Physical AI drives end-side hardware into the upgrade cycle
3. After-market pricing of gold
Type: Agency Hot Reviews
Morgan Stanley: Gold's hedging role needs to be repositioned to maintain the first choice for metal assets. The target price for the second quarter of 2027 is $5,000 per ounce
Announcement Express
Positive announcements
1. Gree Electric: Tokio Sea Internet, which holds more than 5% of the shares, plans to increase its holdings by 600 million to 1.2 billion yuan
2. Shenwu Energy Saving: The holding subsidiary won the bid and signed the Kashi grid energy storage power plant EPC project, with a total contract price of 717 million yuan
3. Hengshuo Co., Ltd. plans to pay an advance payment of 173 million yuan to Wuhan Xinxin for production capacity
Negative announcements
1. Chengxing Co., Ltd.: terminated the construction of two Xuanwei Phosphoelectric projects and calculated asset impairment reserves of RMB 29.1491,000
2. Maiwei Shares: Terminate the issuance of convertible corporate bonds to unspecified targets
3. *ST Zhuoran: Stocks may be at risk of termination of listing due to market capitalization below 300 million yuan. 11th Risk Alert
Overseas markets
The three major US stock indices closed up collectively. The NASDAQ rose 1.18%, the S&P 500 index rose 0.6%, and the Dow rose 0.03%. The expansion of demand for AI chips led to a strengthening of the storage and optical communication sectors, with Western Digital up more than 6% and Coherent up more than 6%.” Most of the “tech giants” rose, with Tesla up 4.04%, Amazon up 1.61%, and Meta down 1.64%.