Chip stocks rose against the market. As of press time, Hua Hong Semiconductor (01347) rose 2.42%, Shanghai Fudan (01385) rose 2.34%, and Semiconductor Manufacturing International Corporation (00981) rose 1.73%.
On the news front, the wind of recovery in the semiconductor industry has already started. Recently, many semiconductor companies at home and abroad have reported impressive company business data, with many companies' net income for the first half/second quarter of the year skyrocketing. In addition, according to supply chain surveys, most of Taiwan Semiconductor's customers have agreed to raise foundry prices for reliable supply. Currently, news of price hikes in the semiconductor industry chain is becoming more frequent, covering manufacturers such as Qualcomm, Taiwan Semiconductor, and Hua Hong, covering IC design, chip foundry and other links.
Zhongtai Securities believes that as the July earnings period approaches, it is recommended to focus on sectors with relatively good Q2 performance. The electronic sector saw a turning point in inventory in Q3 2023 and emerged from the cyclical low in Q1 2024, with a profit turning point already appearing. As the second and third quarters gradually enter the consumer season, it is expected that performance will continue to improve. It is recommended to focus on downstream demand that is expected to exceed expectations.