2.12 Midday Trading: Clearly showing the need to stack computing power; AI software is not pessimistic

[Taogu Ba]

Market Overview

2 trillion yuan, this isn’t important. The key point is that the market is starting to lose face again.

If we push hard today,

We could see 8 consecutive positive days, feeling like we’ve returned to the fear of the previous 17 consecutive positive days.

This is because there are no key resonance bullish signals here.

If there’s no significant pullback here, and tomorrow hits 9 consecutive positive days, giving a pre-holiday bonus market,

When sentiment and volume resonate again, wouldn’t it just take off?

Profit Effect

Strong divergence, then weakening and recovery

Hengdian is a representative sentiment wave

Being suppressed by a single word, killing sentiment

Yesterday’s 4-board, Baichuan didn’t continue upward, normal expectation

Yesterday’s batch of 3 boards, Long Yun and Huanrui didn’t fall

Two single words, large positions added, Zhangyue Technology reduced positions

But none of them opened

Sentiment

Sentiment Cycle

The overall structure still doesn’t count as a main bullish sentiment

It’s considered a strong chaotic structure

But the overall trend is seen as a bullish phase with oscillation and accumulation.

Theme Cycle

SD this direction

Has turned into an onion-peeling mode, with only two left, tomorrow’s showdown

After today’s continued strong divergence, funds rotated into new models and spilled over into other sectors

Computing power concept is attempting to enter a second stage of main rise

This direction is likely to become a new cycle after the holiday

Computing power divides into two logic paths

First, overseas computing power, revolving around NVIDIA’s advanced technology iteration

CPO surged last year, not much movement this year, leading stocks like Yizhongtian are less active now

Excluding Yizhongtian’s relatively small gains, Tianfu Communication is tired out, the other two are exhausted

Then, optical modules, especially chipless optical fiber, are strengthening in subdivisions

The leading company in this segment is Longfei Optical Fiber

Since yesterday, PCB electronics logic has strengthened, with Honghe Technology as the leading company

Overseas storage has been rising steadily

Last night saw a big surge, today pulled back after hitting highs

Storage is divided into overseas mapping and our domestic Yangtze IPO

Domestic computing power mainly focused on advanced process expansion and domestic large-scale data center expansion earlier

Data center expansion has slowed down again because H200 has not yet been effectively implemented

The recent surge in domestic computing power is driven by the explosion of Yuanbao, Qianwen, Seedance, all facing server shortages

Domestic computing power shortage has led to a strong demand for data centers and large manufacturers’ computing leasing

Today’s surge was mainly driven by positive catalysts

State-owned cloud has favorable news, Meili Cloud surged after a single drop, then fell sharply

Today’s strong sector is liquid cooling, no clear logic, but recognizable as Chuanrun Shares, with bidding for shares

The core explosive point is Dawi Technology’s continuous order increases, which aligns with ByteDance’s computing power supply logic

Today’s rotation includes robots and commercial aerospace, but the strength is insufficient; smart grid strength is also lacking.

The overall pattern is that the US lacks electricity, China lacks chips—this is the current landscape.

Continue to stay in cash

Tomorrow is the ultimate showdown for consecutive limit-up stocks and high targets.

AI applications are not pessimistic.

If Zhangyue can survive, it will boost AI returning to the market, and there are still expectations after the holiday.

Computing power is now clear, regardless of how AI software evolves, ultimately the benefits come from hardware computing power demand.

This could mark a new cycle in computing power, then reverse engineer the old cycle with AI applications moving in a second wave.

Suppose Lio股份 just closes red today, then hits a limit-up tomorrow, and after the holiday, driven by market sentiment, reaches a new high on the right side.

Wouldn’t that be a new cycle pushing the old cycle into a second wave?

Back then, DS wasn’t software at the start, then hardware like Hanggang appeared.

Now, with so many AI software fermenting during the holiday, normal software shouldn’t be lagging.

This wave of SD will also be driven by both hardware and software, but ultimately aligned with the market’s stronger direction.

Currently, funds seem to favor hardware.

Tomorrow is Hengdian Film & TV’s divergence exhaustion point.

If the market exceeds expectations this afternoon, sentiment may be preemptively grabbed.

Today remains a left-side pre-judgment buy point; tomorrow will be the official right-side buy point.

It feels like stocks that missed the board today may rebound tomorrow.