Yesterday, Brother Da mentioned that major internet companies are about to initiate a Spring Festival "money-sprinkling" mode, aiming to compete for users, avoid losing to rivals, and prevent missing out on an entire era.
Today, fresh news emerged again in the field of AI applications.
First, Moonshot AI released its new-generation open-source model Kimi K2.5. It is understood that Kimi K2.5 can simultaneously coordinate 100 intelligent agents, achieving an efficiency improvement of up to 4.5 times. Additionally, market rumors suggest that Moonshot AI has recently completed a new round of financing.
Second, DeepSeek unveiled its latest generation document recognition model, DeepSeek-OCR 2. This model is an upgrade from DeepSeek-OCR, with core changes focusing on the design of the visual encoder. Reportedly, DeepSeek-OCR 2 enables AI to "read" complex documents like a human, improving recognition performance by 3.73%.
Finally, Baidu's Wenxin APP recently launched the industry's first "multi-person, multi-Agent" group chat feature, initiating a new round of internal testing. It is reported that this feature supports deploying multiple AI roles within the same group chat, including vertical-specific intelligent agents such as "Group Chat Assistant," "Personal Assistant," and "Health Manager."
Just as AI competition extends to the cloud and application layers, significant developments are also occurring at the AI hardware level.
First, NVIDIA invested $2 billion in AI cloud service provider CoreWeave to assist CoreWeave in building AI data centers with a capacity exceeding 5 gigawatts by 2030.
Second, Micron Technology plans to invest an additional $24 billion in Singapore over the next decade to construct a new NAND flash memory fabrication plant.
Third, SK Hynix will exclusively supply HBM3E chips to Microsoft's Maia 200. According to Microsoft, the Maia 200 chip is "designed for inference," outperforming Amazon's third-generation Trainium and Google's seventh-generation TPU in multiple tests, and is touted as "the most powerful self-developed chip among all hyperscale cloud service providers."
Fourth, Licheng Technology partnered with Feidu Technology to mass-produce and launch China's first fully domestic, innovative space intelligent server all-in-one machine, the Yuanzun Freedo Yuan S800.
In the third quarter of 2025, the capital expenditures of Google, Microsoft, Meta, and Amazon increased by 74% year-on-year, and they raised their guidance for 2026, highlighting their confidence in AI investments. Furthermore, TSMC's revenue data for the fourth quarter of 2025 and its capital expenditure guidance for 2026 significantly exceeded market expectations, confirming the robust demand within the AI industry.
Therefore, the investment opportunities presented by the AI wave deserve serious attention, akin to past trends like new energy vehicles, mobile internet, and "Internet+."
Let's return to the market.
Today, the three major A-share indices collectively rose. At the close, the Shanghai Composite Index was up 0.18%, while the Shenzhen Component Index and the ChiNext Index rose by 0.09% and 0.71%, respectively.
Total trading volume across the Shanghai, Shenzhen, and Beijing Stock Exchanges amounted to 2,921.7 billion yuan, a decrease of 359.3 billion yuan compared to the previous day. More stocks fell than rose, with over 3,400 declining; the median stock price change was a decrease of 0.64%.
Several phenomena were observed in the market today.
First, the intervention by mysterious funds in ETFs occurred during the late trading session. Compared to recent days, the timing was later, and the number of interventions during the trading session decreased.
In the article dated January 25th, Brother Da mentioned a detail: when the Shanghai Composite Index shows a significant rise, the mysterious funds intervene, as seen from January 21st to 23rd.
The same pattern occurred today. The Shanghai Composite Index rose notably around 2:00 PM, followed by a surge in ETF trading volume.
Hence, for the future market outlook, simply keep an eye on the Shanghai Composite Index. If the index shows a significant intraday rise but the mysterious funds no longer sell ETFs, it might indicate that the phase of these funds controlling the pace and market sentiment is nearing its end.
Second, AI application stocks rebounded significantly. Not only did core stock BlueFocus surge, approaching its previous high, but also secondary stocks and those that had recently experienced sharp declines showed clear rebounds.
Against the backdrop of major internet companies initiating a Spring Festival AI battle, Brother Da believes the AI application sector will remain actively traded.
Third, the commercial aerospace sector bottomed out and recovered. On November 24th of last year, the left bottom of the Shanghai Composite Index appeared, marking the start of a market cycle driven by commercial aerospace. As long as this leading sector remains strong in its consolidation or trends upward, other core sectors will have opportunities for rotation.
On the news front, an article titled "2026, An Anticipated Big Year for Commercial Aerospace" was published in today's People's Daily. The article pointed out that facing increasingly intense global competition in commercial aerospace, China's commercial aerospace sector urgently needs to shift from "policy-driven" to "market-driven" development to activate endogenous momentum.
Finally, the AI computing power sector strengthened, primarily stimulated by news of NVIDIA's investment in CoreWeave and Micron Technology's planned additional investment in Singapore.
Over the past month, the AI computing power sector had weakened, even being mockingly referred to by investors as "old-timer," "ancient computing power," or "classical tech." However, the fact that Inphi Corporation and Eoptolink Technology became the top two holdings of public funds has, to some extent, altered this market perception.
Doesn't this situation mirror the reflection seen in the last structural bull market, where Kweichow Moutai and Contemporary Amperex Technology became the top two fund holdings?
Although the AI hardware sector has generally been consolidating recently, some individual stocks have still hit new highs, indicating that institutions remain active in this direction.
For the AI hardware sector, the major turning points might depend on catalysts from the earnings of core stocks or the upcoming NVIDIA GTC conference in March.
In terms of sectors, aviation, semiconductors, communication equipment, insurance, and electronic components were the top five gainers among industry sectors. Among these, aviation shares significant overlap with the commercial aerospace theme, while communication equipment and electronic components are related to AI hardware.
The semiconductor sector rose sharply, mainly influenced by significant gains in SK Hynix, Samsung Electronics, and Hua Hong Semiconductor. At the industry level, quotes for wafer foundry and packaging & testing have been rising, and chip design quotes are also expected to increase.
Dongguan Securities noted that the wave of price increases in the semiconductor industry has spread from memory storage to other segments, such as semiconductor packaging & testing and CPUs. AI-driven price hikes across the semiconductor supply chain may exert some pressure on the cost side of downstream consumer electronics (like phones and computers), potentially affecting final shipments. However, the continued increase in AI infrastructure investment throughout 2026 is a certainty; it is recommended to focus on investment opportunities in semiconductor advanced packaging, related equipment for advanced packaging, and CPUs.
The non-ferrous metals sector surged initially but then pulled back today, with gold, silver, and tungsten still performing relatively well.
Most varieties within the non-ferrous metals sector have corresponding futures contracts, making the sector highly susceptible to fluctuations in the futures market. A significant drop in the futures market would likely drag down the sector, especially for varieties that have seen substantial recent gains.
The recent market rhythm has been quite chaotic, with weak sector continuity. Therefore, regarding trading strategy, if opening new positions, it's advisable to focus on buying on dips and primarily participate in rotational sectors that have been correcting for several days.
Finally, Brother Da offers a summary: although the mysterious funds only intervened late in the session, the phase of controlling the pace and sentiment is not yet over. For the future market outlook, observe whether the mysterious funds intervene when the Shanghai Composite Index shows a significant rise.
Regarding sectors, with the AI industry chain demonstrating strength, consider buying on dips in the AI application sector, which is catalyzed by the Spring Festival "money-sprinkling." The commercial aerospace sector is consolidating strongly, making it suitable for buying on dips after consecutive declines or significant drops. Apart from the two main themes of commercial aerospace and AI applications, one can also pay attention to rotational sectors like AI hardware, non-ferrous metals, chemicals, and semiconductors.
PS: To learn more of Brother Da's views or to communicate with him, please follow the WeChat public account "道达号" (Dao Da Hao).
According to the latest regulations from relevant national authorities, this market commentary does not involve any operational advice. Investors assume all risks upon entering the market.
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