On February 26, the market staged a rebound after hitting bottom, with the three major indices closing mixed. The ChiNext Index fell over 1% intraday, showing divergence between yellow and white lines. At the close, the Shanghai Composite Index dropped 0.01%, the Shenzhen Component Index rose 0.19%, and the ChiNext Index declined 0.29%.
Sector-wise, PCB, CPO, liquid cooling servers, and computing power chip concepts performed strongly. The power sector gained, small metal concepts were active, and environmental protection stocks rose in late trading. On the downside, film and cinema, insurance, and real estate sectors led the declines.
Over 2,800 stocks fell across the market. The combined turnover on the Shanghai and Shenzhen exchanges reached 2.54 trillion yuan, an increase of 75.9 billion yuan from the previous trading day.
Supported by continued capital inflows after the holiday, A-shares experienced a pullback today but demonstrated strong resilience.
The three major indices fluctuated in the morning session and rallied in the afternoon, closing with mixed results. The Shanghai Composite Index nearly turned positive, ending down 0.01%, but still managed to form a lower shadow on its daily K-line chart.
Additionally, Wind data showed that the average stock price across the entire A-share market rose to 30.32 yuan today, approaching a new high since 2026 and also marking the highest level in over a decade.
However, the market did not maintain the broad gains seen in the previous two sessions. In terms of contribution, tech themes, particularly AI hardware—previously dubbed "classical computing"—became the main drivers of the indices.
As mentioned in yesterday's update, after two consecutive days of broad gains post-holiday, the market had reached a near-term resistance level, making adjustments inevitable. Although today's session was dominated by consolidation, the overall trend remains healthy.
According to Tonghuashun data, by the close, various AI hardware-related concepts ranked among the top gainers.
Beyond the market's natural rotation, the strength in "classical computing" was largely fueled by NVIDIA's earnings report providing a boost.
Reports indicated that after U.S. markets closed on Wednesday Eastern Time, NVIDIA released its fiscal 2026 fourth-quarter and full-year results. Data showed that in Q4 fiscal 2026, NVIDIA achieved revenue of $68.127 billion, surpassing market expectations and up from $39.331 billion in the same period last year. Data center revenue reached $62.38 billion, also exceeding forecasts. NVIDIA projected Q1 fiscal 2027 revenue between $76.44 billion and $79.56 billion, above the market expectation of $72.78 billion.
Before A-shares opened, this news had already boosted Japanese and South Korean stock markets, setting a positive tone.
In summary, optimists view NVIDIA's strong earnings and management commentary as a stabilizing force amid recent software stock declines triggered by Anthropic's product releases and Citrini's "AI ghost stories," which heightened investor anxiety. The report reaffirmed strong AI demand and limitless growth prospects.
The semiconductor sector also gained. In the afternoon, computing power chip concepts surged, with Cambricon rising nearly 10% intraday, followed by Moore Threads and Muxi Shares.
On the news front, domestic computing power chip leader Hygon Information announced an estimated Q1 2026 net profit attributable to shareholders of 620 million to 720 million yuan, a year-on-year increase of 22.56% to 42.32%.
SK Hynix revealed during a recent Goldman Sachs conference call that driven by genuine AI demand and limited cleanroom capacity, memory prices will continue rising this year, with current DRAM and NAND inventories lasting only about four weeks.
Separately, reports indicated that procurement costs for smartphone memory chips have surged over 80% compared to the same period last year, with no signs of slowing. Due to this cost pressure, several leading smartphone brands plan to initiate a new round of price adjustments in early March. This would mark the industry's largest and most significant collective price hike in nearly five years.
Industrial Securities noted that overall, the memory industry is unlikely to achieve large-scale effective supply in 2026. This trend is expected to benefit upstream semiconductor equipment and packaging/testing segments, as well as domestic memory chip designers, memory module makers, and related firms.
For investors focused on the precious metals sector, a niche but recently active product saw new developments.
According to an announcement, starting today (February 26), compensation for investors affected by the valuation adjustment of the SDIC Silver LOF has officially commenced. Investors can complete identity verification via Alipay's "SDIC Silver Fund" mini-program to handle related matters.
Previously, on February 2, a valuation adjustment caused the SDIC Silver LOF's net value to plummet 31.5% in a single day, setting a record for the largest one-day drop in a public fund and drawing significant attention.
The compensation plan covers the portion of the valuation adjustment impact (from -17% to -31.5%). Natural person investors with claims under 1,000 yuan will receive full settlement compensation, expected to benefit over 90% of such investors. The plan also outlines compensation ratios for claims exceeding 1,000 yuan, with a cap of 5% for amounts over 10,000 yuan.
Notably, as international silver prices recovered during the Week of the Horse, the Silver LOF's on-market price showed strong performance over the past three trading days. It hit limit-up on February 24 and 25, and today opened lower but rose intraday, briefly turning positive in the afternoon. The cumulative gain over three days reached 19.43%.
This implies that although investors trading on the secondary market are not covered by the compensation, those previously holding positions have an opportunity to recoup losses through short-term trading.
Cover image source: AIGC.
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