Nvidia's robust earnings report has significantly bolstered market confidence in the AI narrative. Today (August 27), semiconductor chips mounted a strong comeback, with memory, analog chips, and computing power chips all strengthening across the chain. Awin Electronic led gains with a 14% surge, Montage Technology rose over 10%, and other notable advancers included Southchip Semiconductor, ALPHA & OMEGA SEMICONDUCTOR-U, VeriSilicon, Biwin Storage, and Hygon Information Technology. The benchmark index tracked by HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which offers near-comprehensive chip industry exposure with memory chips comprising nearly half* of its holdings, jumped 4.55%.

A confluence of positive factors from both domestic and international markets is at play, with Nvidia's overnight results and guidance significantly exceeding expectations. Nvidia indicated that memory price increases have already surpassed previous forecasts, with further escalation anticipated next year. The global memory chip shortage continues to intensify, as the "big three" memory makers — Samsung, SK Hynix, and Micron — have completed capacity allocation for the full year 2027, with DRAM and HBM capacity fully sold out. SK Group Chairman Chey Tae-won predicts that AI semiconductor demand will surge 60% to 100% year-over-year in 2027, with overall memory chip demand growing 50% to 60%, leading to what he describes as the most severe supply-demand imbalance in history.

Analysts point out that the memory industry has transformed from a beneficiary of AI computing power investment into a critical bottleneck constraining AI infrastructure development. The structural shortage driven by AI demand runs through the entire industry chain, with the supply-demand gap continuing to widen. Guotai Haitong believes that the moderation in contract price growth for the third quarter does not signal a cycle peak, and expects the price uptrend to extend into 2027. The market's focus is likely to shift from single-quarter price/profit elasticity to multi-year sustainability of high profitability and capital return levels supported by strong cash flow generation, driving a re-rating of the industry's valuation center.

According to Guosen Securities, the recovery in memory price expectations, as indicated by the "barometer," is opening up valuation space for the price hike chain. Multiple segments including wafer foundry, memory, PCB, passive components, and analog chips are experiencing rising prosperity, and the valuation recovery in the memory sector is expected to unlock headroom for the broader "price hike chain."

On the domestic front, data released today by the National Bureau of Statistics on industrial enterprise profits for January-July shows that the integrated circuit industry, represented by computing power and memory chips, saw profits surge 18.5 times year-over-year, contributing over 80% to the profit growth of the entire electronics industry — validating the sector's high prosperity. Galaxy Securities notes that last week's high-level meeting deployed the construction of a new generation communication network, with the "six networks" initiative transitioning from top-level planning to concrete policy implementation. The focus remains on verifying growth through fundamental performance, anchoring on core directions of "six networks" infrastructure construction, and targeting leading companies with high earnings delivery, including the semiconductor industry chain.

To capitalize on the "super cycle" in the chip industry, the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) is a high-beta option with 20% price limits. It passively tracks the Shanghai Science and Technology Innovation Board Chip Index, covering core segments of the chip industry chain, with over 90% weight in integrated circuits and semiconductor equipment. This positioning effectively maps the industrial development trends driven by the continuous upgrade of AI computing infrastructure. Off-market investors can consider the feeder fund (021225).

Data sources: Shanghai and Shenzhen stock exchanges, etc. Note: The memory chip content is based on the benchmark memory chip index (980138.CNI), with a weight of 49.95% as of August 26. Awin Electronic, Montage Technology, Southchip Semiconductor, ALPHA & OMEGA SEMICONDUCTOR-U, VeriSilicon, Biwin Storage, and Hygon Information Technology are all constituents of the Sci-Tech Innovation Board Chip Index, with weights of 0.22%, 8.10%, 0.35%, 0.81%, 2.80%, 2.94%, and 8.88%, respectively.

Institutional views sourced from: Guotai Haitong (2026.07.28) "Memory Supply-Demand Gap Continues to Widen; High Profit Resilience Supports Long-Term Cycle"; Guosen Securities (2026.08.24) "Memory Expectation Recovery to Open Valuation Space for Price Hike Chain; Watch for Edge-Side Innovation Catalysts"; Galaxy Securities (2026.08.23) "Disturbances Intertwined with Verification; Focus on Leading Targets with High Earnings Delivery."

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