To The Moon

Hong Kong's three major indices showed mixed performance in the morning session. At the midday close, the Hang Seng Index was down 0.15% at 24,620.26, the Hang Seng Tech Index gained 0.62%, and the Hang Seng China Enterprises Index rose 0.09%.

In terms of sector performance, technology and internet stocks were mixed. Lenovo Group (HKEX: 00992) and Tencent (HKEX: 00700) rose over 3%, while Bilibili-W (HKEX: 09626) and NetEase-S (HKEX: 09999) fell more than 1%.

Semiconductor Sector Shows Recovery

The semiconductor sector saw a rebound. A Morgan Stanley report suggested that Nvidia's reduction in memory configuration for its Vera Rubin racks is not indicative of cooling AI demand but rather reflects a worsening shortage in DRAM supply. Data from April showed DRAM and NAND sales and price growth hitting record highs, with memory remaining the biggest bottleneck for AI infrastructure. Due to persistently tight supply and demand, Morgan Stanley has significantly raised its revenue forecasts for the semiconductor industry and remains positive on leading AI and memory supply chain companies such as Micron, SanDisk, and Nvidia.

Optical Communications Sector Leads Gains

The optical communications sector was among the top gainers. YOFC (HKEX: 06869) surged over 6%. On June 8th local time, Amazon announced a multi-billion dollar agreement with glass and fiber optic technology manufacturer Corning to supply fiber, cables, and connectivity solutions to support Amazon's expanding data center infrastructure across the United States. Previously in May, Corning signed a major contract with AI leader Nvidia. Corning will build three new factories in North Carolina and Texas specifically to provide optical products for the computing power leader. The parties stated that Corning would increase its US-based manufacturing capacity for optical connectivity products tenfold and expand US optical fiber production capacity by more than 50%.

Energy Shares Under Pressure

Oil and gas stocks weakened. Shandong Molong (HKEX: 00568) plunged over 17%. According to reports, Iran and Israel announced on the 8th that they would cease attacks on each other, coming less than 24 hours after the latest exchange of fire. Iran's armed forces stated that its military operations in this round have concluded. Israeli Prime Minister Benjamin Netanyahu issued a statement saying that Israel has temporarily halted attacks on Iran following Iran's cessation of fire, but warned that Israel would respond forcefully if Iran resumes attacks.