During the early trading session on March 4th, hard technology stocks staged a comeback. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) saw its on-exchange price rise over 1%. Boosted by stellar earnings, industry leader Biwin Storage Technology Co.,Ltd. hit the 20% daily limit up. Companies like Dongxin Semiconductor, Lianyue Technology, and Langqi Technology gained over 3%, while Cambricon Technologies and others rose more than 2%.
The surge follows an announcement from Biwin Storage Technology Co.,Ltd., projecting revenue for January-February 2026 to reach between 40 billion and 45 billion yuan, a year-on-year increase of 340% to 395%. Net profit attributable to shareholders is forecasted to be between 1.5 billion and 1.8 billion yuan, representing a surge of 921.77% to 1086.13% and marking a turnaround to profitability compared to the same period last year. The company attributed this performance to a highly favorable cycle for the storage industry in 2026, driven by AI computing demands and domestic substitution trends, which are pushing DRAM and NAND prices higher amid a supply shortage, from which the company is benefiting significantly.
Data indicates that since September 2025, factors including explosive demand growth and a sharp contraction in production capacity have widened the global memory market deficit, leading to sustained price increases for storage chips. As of January this year, prices for both major memory chip products, DRAM and NAND flash, had reached their highest levels since records began in 2016.
Dongguan Securities commented that the rapid increase in demand for high-density storage from AI data centers is fueling the ongoing price rise for storage chips, thereby boosting profits for related companies. Semiconductor equipment and materials firms are also benefiting from expansion in advanced process capacities and the localization of supply chains. Combined with policy support, the overall industry sentiment is expected to continue improving.
For investors looking to capitalize on the chip industry's "super cycle," high-volatility, 20% limit-up stocks are a key focus. Public information shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds track the SSE Science and Technology Innovation Board Chip Index. This index comprises 50 hard-tech companies involved in semiconductor materials and equipment, chip design, manufacturing, packaging, and testing. It provides comprehensive exposure to the chip industry chain, with over 90% weight in core areas like integrated circuits and semiconductor equipment, highlighting its high technological content and strong barriers to entry.
According to data, as of the end of 2025, the SSE Science and Technology Innovation Board Chip Index had an annualized return of 17.93% since its base date, significantly outperforming peers such as the STAR Market Semiconductor Index and the China Semiconductor Index. It also demonstrated smaller maximum drawdowns and a superior risk-return profile.
The index's performance over the past five full years is as follows: +6.87% in 2021, -33.69% in 2022, +7.26% in 2023, +34.52% in 2024, and +61.33% in 2025. It is important to note that the composition of the index is adjusted according to its rules, and past performance does not guarantee future results.
A bullish MACD crossover signal has formed, indicating positive momentum for several stocks.
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