Stock Activity Index Shows Divergence, Shanghai Composite Edges Down 0.08% at Midday

On February 26, A-shares experienced narrow-range consolidation. The Shanghai Composite Index declined by 0.08% to 4144.08 points at the midday close. The Shenzhen Component Index rose by 0.28%, while the ChiNext Index fell by 0.39%. The Beijing Stock Exchange 50 Index gained 0.28%, the STAR 50 Index increased by 0.12%, and the CSI A500 Index dropped by 0.06%. The half-day turnover for A-shares reached 1.65 trillion yuan.

In terms of liquidity, the central bank announced that on February 26, it conducted a 7-day reverse repurchase operation amounting to 320.5 billion yuan at a fixed interest rate of 1.40% through a quantity tender. The bid volume and awarded volume both stood at 320.5 billion yuan. According to Wind data, reverse repurchases totaling 400 billion yuan matured on the same day, resulting in a net withdrawal of 79.5 billion yuan for the day.

Regarding market news, during NVIDIA's earnings conference call, CEO Jensen Huang and CFO Colette Kress repeatedly emphasized that AI development has reached a turning point, with computing power demand experiencing explosive growth. In this new era, computing power equates to revenue. NVIDIA's strong financial results and management's comments served to bolster market confidence, highlighting robust AI demand and limitless development prospects.

Sector-wise, power stocks remained active, with Hua Yin Electric Power, Yu Neng Holdings, and Gan Neng Co., Ltd. all hitting the daily limit up. NVIDIA's better-than-expected earnings report overnight boosted sentiment across the AI industry chain. Computing hardware stocks performed notably well, with optical modules and copper cable sectors continuing their strength. Tianfu Communication, Changfei Fiber, Chuang Yi Tong, Huafeng Technology, and Zhongtian Technology reached new intraday highs.

Recently, NVIDIA announced plans for large-scale deployment of CPO technology this year, with 2026 marking the initial year of its scaled implementation from zero to one. CPO and pluggable technologies are not mutually exclusive but complementary, unlocking new growth potential for optical communication within cabinet interconnections. CPO relies more heavily on silicon photonics capabilities. Leading optical module manufacturers possess advanced photonic integrated circuit design capabilities and have conducted early technical research and preparations in the CPO field, where higher technical barriers favor established players.

Integrating the latest research reports from over 10 securities firms including Tianfeng, Anxin, and Guoxin, here is a brief introduction to four companies for reference.

1. Jie Pu Te Leveraging its deep technical expertise in module testing, the company is expected to enhance the automation efficiency of MPO/MMC, laying the foundation for securing more orders from leading clients. — Shenwan Hongyuan

2. Mai Xin Lin The company is expanding into the computing power sector, capitalizing on the explosive growth of domestic large models. With the rapid development of the artificial intelligence industry, its business scale is set to increase further. — Zhonghang Securities

3. Wei Er Gao The company holds significant advantages in technology accumulation, customer resources, product implementation, and industrial chain integration. Coupled with the rapid scaling of new products driven by AI applications, it is poised to enter a second growth phase. — Dongwu Securities

4. Hua Feng Technology As a leading provider of defense and communication products, the company's core products—including switches, accelerated computing servers, and core routers—are seeing rising demand benefiting from advancements in artificial intelligence, cloud computing, and big data technologies, alongside an accelerated data center construction pace. — Guohai Securities