Group 1 - The semiconductor equipment ETF (159516) saw a rise of over 8% with a net inflow of 250 million units, indicating a strong demand for semiconductor equipment assets [1] - Huawei announced its AI computing power roadmap at the Huawei Connect Conference on September 18, projecting a doubling of computing power annually, with new chips set to launch from 2026 to 2028 [1] - The Atlas 900 supernode has been deployed over 300 times, serving more than 20 clients, with additional supernodes expected to launch in 2026 and 2027 [1] Group 2 - The State Administration for Market Regulation is conducting further investigations into NVIDIA for potential violations of antitrust laws, impacting its sales in China [2] - The semiconductor industry chain is improving, which may lead to a significant increase in the market share of domestic computing power alternatives as NVIDIA's sales outlook remains pessimistic [2] - The semiconductor equipment ETF tracks the semiconductor materials and equipment index, focusing on upstream sectors of the semiconductor industry, providing investors with insights into key segments [2]

Core Viewpoint - Huawei has successfully navigated challenges and emerged as a leader in computing power and smartphone markets, showcasing significant advancements in technology and product offerings [1][7][12]. Group 1: Computing Power Achievements - Huawei has announced the development of the world's strongest computing power clusters, including the Atlas 900 super node with a maximum computing power of 300 PFLOPS, making it the largest in the world [5]. - The latest super node products, Atlas 950 SuperPoD and Atlas 960 SuperPoD, support 8192 and 15488 Ascend computing units respectively, achieving comprehensive leadership in key metrics such as computing unit scale and total computing power [5]. - Huawei's Atlas 950 super node is 56.8 times larger in card scale and 6.7 times greater in total computing power compared to NVIDIA's upcoming NVL144, indicating a significant competitive edge [5]. Group 2: Smartphone Market Recovery - Huawei's smartphone shipments reached 12.5 million units in Q2 2025, reclaiming the top position in the Chinese market with an 18.1% market share [11]. - The launch of the Mate60 series and foldable phones has marked a significant recovery for Huawei's smartphone business, which had faced severe challenges since 2019 [11]. - In the first half of 2025, Huawei's total smartphone shipments were 25.4 million units, maintaining its leading position in the domestic market [11]. Group 3: Automotive Sector Developments - Huawei has partnered with various car manufacturers to create the "Hongmeng Intelligent Driving" series, achieving a cumulative delivery of 930,000 vehicles, maintaining the highest average transaction price among Chinese automotive brands for 14 consecutive months [11]. - The upcoming brand "Qijing," developed in collaboration with GAC, represents a new exploration of technology monetization paths for tech giants in the automotive sector [11]. Group 4: Research and Development Investment - Over the past decade, Huawei has invested approximately 1.25 trillion yuan in research and development, with more than half of its employees engaged in R&D activities [12]. - As of the end of 2024, Huawei holds over 150,000 valid authorized patents globally, reflecting its commitment to continuous innovation and technology advancement [12].

Market Overview - The three major indices experienced a rapid rise followed by a quick decline, with the Shanghai and Shenzhen markets recording a trading volume of 3.135 trillion, an increase of 758.4 billion compared to the previous trading day, marking the third highest volume of the year [1] - By the close, the Shanghai Composite Index fell by 1.15%, the Shenzhen Component Index by 1.06%, and the ChiNext Index by 1.64% [1] Semiconductor Sector - The semiconductor sector showed strength, with a notable rise in the Semiconductor Equipment ETF (159516) which increased by 4% after a brief pullback, and the Sci-Tech Chip ETF (589100) which rose by 2.28% [1] - Recent positive developments in the semiconductor sector include SMIC testing a 28nm deep ultraviolet lithography machine from a Shanghai startup, which could signal significant advancements in domestic semiconductor manufacturing [3] Huawei's AI and Chip Development - Huawei announced its AI computing power roadmap at the Huawei Connect Conference, projecting a doubling of computing power every year, with the Ascend 950PR chip expected to launch in Q1 2026 [2] - The company has deployed over 300 Atlas 900 supernodes, serving more than 20 clients, indicating strong demand for its AI infrastructure [2] Regulatory Environment - Nvidia is under investigation by China's market regulator for potential violations of antitrust laws, which has impacted its sales in China this year [3] - The semiconductor industry is expected to improve, paving the way for increased domestic production capabilities, particularly in light of challenges faced by foreign competitors like Nvidia [3] Investment Opportunities - Investors are encouraged to focus on both North American and domestic computing power to mitigate geopolitical risks, with various ETFs representing these sectors [4] - The Hong Kong stock market is expected to benefit from the US Federal Reserve's recent interest rate cuts, which historically correlate with positive performance in the technology sector [5][6] Technology Sector in Hong Kong - The Hong Kong technology sector, often referred to as the "Silicon Valley of the East," includes key Chinese tech assets and has shown significant growth potential [7] - The Hong Kong Technology ETF (513020) represents a balanced investment across various tech industries, including internet, new energy vehicles, chips, and biomedicine, indicating strong overall investment value [7]

Core Viewpoint - Huawei has launched new supernode products, significantly enhancing computing power and interconnect bandwidth, positioning itself as a leader in the AI chip industry [6][7][8]. Group 1: Huawei's New Products - The Atlas 950 supernode, based on the Ascend 950DT chip, supports 8192 Ascend 950DT chips, achieving a total computing power of 8E FLOPS for FP8 and 16E FLOPS for FP4, with an interconnect bandwidth of 16PB/s [7]. - The Atlas 960 supernode, based on the Ascend 960 chip, can support up to 15488 cards, with a total computing power of 30E FLOPS for FP8 and 60E FLOPS for FP4, and an interconnect bandwidth of 34PB/s [8]. - The Atlas 950 supernode is set to launch in Q4 2026, while the Atlas 960 is expected in Q4 2027, both significantly outperforming competitors like NVIDIA's upcoming products [7][8]. Group 2: Market Demand for Optical Modules - The demand for optical modules is projected to increase, with estimates for 2026 indicating a need for 3000-3200 million units, driven by major companies like Microsoft and NVIDIA [12]. - The 800G optical module market is expected to exceed expectations, particularly due to Microsoft's procurement strategies [12]. - The ratio of GPUs to optical modules varies by company, with NVIDIA at 1:3-1:4.5 and Google at approximately 1:14, indicating a growing need for optical modules in the industry [17]. Group 3: Key Suppliers and Market Dynamics - Major suppliers for optical modules include companies like 旭创 (Acacia), 菲尼萨 (Finisar), and 新易盛 (NewEase), with varying market shares across different clients [18]. - For 2026, the optimistic demand for 800G and 1.6T optical modules could reach nearly 50 million units, highlighting a potential supply gap [16]. - The competitive landscape shows that 旭创 is a dominant supplier for Google, while 新易盛 holds significant shares with AWS [18].