Chip sector stocks on the Science and Technology Innovation Board rallied sharply during afternoon trading, with the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) climbing over 2%. Leading the surge was industry giant Cambricon Technologies Corporation Limited, which saw gains approaching 10% with trading volume rapidly exceeding 10 billion yuan. Semyc Semiconductor rose more than 5%, while Hygon Information Technology Co.,Ltd. and Piotech advanced over 4%. VeriSilicon Microelectronics and Dosilicon were among other notable gainers.
On February 25, domestic chip leader Hygon Information Technology Co.,Ltd. released preliminary financial results showing 2025 revenue reached 143.76 billion yuan, representing 56.91% year-over-year growth. Net profit attributable to shareholders increased 31.66% to 25.42 billion yuan. Additionally, Hygon projected first-quarter net profit could surge up to 82% to 9.6 billion yuan, highlighting rising demand for domestic high-end chips amid the AI wave.
Hygon's strong performance is not an isolated case. Cambricon's earnings forecast indicates expected 2025 revenue of 60-70 billion yuan, marking 410.87%-496.02% growth, with projected net profit of 18.5-21.5 billion yuan, achieving profitability turnaround. Montage Technology estimated 2025 net profit of 21.5-23.5 billion yuan, growing 52.29%-66.46% year-over-year.
Dongguan Securities noted the semiconductor industry is experiencing overall upward momentum, with AI significantly driving demand across computing chips, memory chips, and wafer fabrication segments. Guojin Securities believes semiconductor equipment is entering a historic development window, suggesting short-term focus on equipment and memory sectors showing earnings delivery through Q1 pre-announcements, while long-term opportunities lie in domestic substitution themes and key technology breakthroughs.
The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds track the SSE STAR Market Chip Index, covering 50 companies across semiconductor materials, equipment, chip design, manufacturing, and packaging/testing. The fund maintains over 90% weighting in core areas like integrated circuits and semiconductor equipment, featuring strong technological barriers and high innovation content.
Data shows the SSE STAR Market Chip Index achieved 17.93% annualized returns since its base date through end-2025, significantly outperforming comparable indices like the STAR Market Semiconductor Index and China Semiconductor Index, with smaller maximum drawdowns and superior risk-return profiles.
Historical index performance for full years: 2021: 6.87%, 2022: -33.69%, 2023: 7.26%, 2024: 34.52%, 2025: 61.33%. Past performance does not indicate future results.
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