Daily Advances in the Semiconductor Sector

Following the holiday, the A-share market opened higher, with trading volume reaching three trillion yuan, as positive news emerged globally. Investors who held full positions over the break were pleased. Iran submitted a new peace negotiation proposal, its foreign minister visited China, and former President Trump is preparing to visit the country. The tradition of opening higher left a strong gap in the passionate month of May.

Investors in domestic computing power were also satisfied. The combined capital expenditure guidance of the four major cloud providers for the first quarter rose to over $700 billion. Weekly usage of domestic large models reached 8 trillion tokens, a sharp increase of 82% compared to the previous period. Although, as in previous episodes, the protagonist faltered midway, the domestic sector continues to produce high-quality developments, offering much to anticipate.

Those holding storage-related stocks had reason to cheer. Six major U.S. and South Korean memory giants hit new highs. A Micron executive stated, "We cannot keep up with memory demand; building five factories globally is still insufficient." The "Korean Circuit Breaker Index" surged 7%, with a yearly gain of 75%, driven by Samsung Electronics surpassing a $1 trillion market cap and SK Hynix reaching a record high. This phenomenon was also noted in Wang Bo's "Farewell to Prefect Du": "If you have a friend who knows your heart, distance cannot keep you apart." Here, "海内存" refers to vast memory capacity.

Semiconductor investors rejoiced as well. The Philadelphia Semiconductor Index rose 55% this year, with a 38% gain over the past month. The STAR Market Chip Index climbed 40% year-to-date and 34% in the last month. Meanwhile, investors in new energy were optimistic as lithium carbonate prices approached 200,000 yuan. CATL, with a market cap of 2 trillion yuan, and Kweichow Moutai, valued at 1.7 trillion yuan, converged triumphantly at a historic crossroads.

At the same time, Berkshire Hathaway's cash position exceeded 50% of its portfolio, marking the fifth such occurrence in history. The previous two instances were during the 2008 subprime mortgage crisis and just before the 2000 dot-com bubble. Fund managers remarked, "Only Buffett could pull this off. Anyone else, missing out on record-high U.S. stocks and the spectacular AI rally while holding half their assets in cash waiting for a crash—who wouldn’t say, 'Do you think you’re Buffett?'"

In such an extreme structural market, choosing the wrong investment is like going against the tide in a surging crowd. Who remembers that, a year ago, the hottest storage concept stocks were the four major banks? Who recalls the frenzy around robotics, innovative pharmaceuticals, and new consumption? Who recollects waiting for tariff policies to settle and for leaders to say, "Good things come to those who wait"? New investors are already intoxicated by 126 consecutive limit-ups, while seasoned traders cling to the age-old wisdom of not chasing early highs. "Day by day, we draw closer to the chip—you rejoice, while I lament."