Today, the semiconductor sector has surged again.

Recently, the semiconductor segment within the technology line has been experiencing a continuous rise, with some leading companies doubling their value this year.

For stability, one might opt for leading public utilities, and for high elasticity, one should follow the technology line closely.

This has been a habitual thinking pattern for many years, and it seems to have been reinforced quite a bit recently.

Today, let's focus on the investment opportunities in the semiconductor sector within technology, a segment with a market value of around 300 billion yuan.

In recent days, the performance of the semiconductor track has strengthened, with many individual stocks surging as if they were volcanic eruptions.

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From July 9th to July 19th, the semiconductor sector rose by more than 11% in total.

Why is the semiconductor sector so strong?

What is the logic or driving factor behind the rebound?

Let's continue discussing this topic.

By summing up the market value, the current market value of the semiconductor sector in A-shares is roughly around 300 billion yuan.

At present, whether it's leading companies with a market value of tens of billions or small and medium-sized stocks with a market value of several billion, and regardless of whether they are high or low-positioned stocks, they are all rotating.

For a long time, A-share semiconductor companies have been moving in line with some overseas technology leaders and have been greatly influenced by external factors.

At this stage, it must be said that the performance of internal factors should be a significant driving force.

The fundamentals of the semiconductor industry are improving, and the "double play" effect of Davis is magnified.

Let's talk about the preliminary performance of the semiconductor industry's mid-year report.

Further analysis reveals the following characteristics: First, a high proportion of companies with performance growth.

Currently, about 40 semiconductor companies have released mid-year reports, with 35 companies expecting a positive increase limit, accounting for nearly 90%.

Second, the performance elasticity is very high.

This is because many companies have doubled their performance.

Third, there are many stocks that have turned from loss to profit.

Many of them were losing money last year, but they have all made profits this year.

Semiconductor sub-companies are mainly concentrated in semiconductor equipment, semiconductor materials, digital chip design, discrete devices, integrated circuit packaging and testing, etc.

The increase in performance is mainly driven by factors such as the recovery of market demand, the improvement of prosperity, and the increase in demand from downstream customers, thereby driving the prosperity of the entire industry chain.

On one hand, there is performance repair, and on the other hand, there is an increase in stock prices.

For example, the semiconductor equipment company Northern HuaChuang, with a net profit increase of 42.84% to 64.51% in the first half of the year compared to the same period last year, has also seen a good repair in this year's first-quarter report.

The stock price has been rising since the beginning of this year, and the rebound has turned into a reversal, with the stock price setting a new high in nearly two years.

There are also many semiconductor companies whose performance has doubled, and their stock prices have either broken through in volume or are still continuing the right-side V-shaped reversal trend.

The list of semiconductor companies with good mid-year performance has been sorted out for everyone, many of which have doubled their growth, with one company's highest expected increase exceeding 10 times, and the stock price has been continuously rising in volume at a low position; another company's expected increase exceeds 300%, and the company's stock price has also closed several limit-up boards in the near future.

Today is another day of rising in volume.

In addition to the basic performance being good and the performance exceeding expectations mentioned above, there are still many stimulating factors for the semiconductor sector, which may also include (but are not limited to) the following reasons: the importance of domestic replacement and independent control has been further increased.

This logic has been fermenting for many years, and the influence of some external factors during this period has further accelerated the process of domestic replacement and achieving independent control of China's semiconductor industry chain.

New quality production.

During this period, new quality production has been highly valued by all parties, and semiconductors are one of the core areas and important elements of new quality production.

The logic of state-owned enterprise reform and market value assessment is driving.

State-owned enterprise reform has also been closely watched during this period, and there is a certain linkage between the strong performance of semiconductors and state-owned enterprise reform.

This is because a considerable part of semiconductor companies are state-owned enterprises and state-owned assets.

By the way, in the past few days, Shanghai state-owned enterprise reform concept stocks have surged.

A listed state-owned asset + high-quality semiconductor target has closed several limit-up boards (the list is in the table "Semiconductor companies with the highest mid-year performance increase in 2024" above).

The logic of the main line of the cost estimate is still spreading or extending.

The scope of the cost estimate is very broad, such as AI and unmanned driving that were popular a while ago, and then gradually spread to semiconductors, which are more like the basic layer or upstream industry chain of these tracks.

When the opportunity comes, the entire industry chain will often perform together.

The driving temperature of the downstream industry chain of semiconductors is rising.

The semiconductor has been greatly driven by the increase in downstream demand such as intelligent vehicles, AI, and consumer electronics during this period.

For example, automotive chips, many concept stocks have exploded in this period, such as YaChuang Electronics, whose main business is automotive electronic components.

On July 19, it closed a "20cm" limit-up board.

YaChuang Electronics has the support of the entire popular concept of Baidu's car.

In addition, the 344 billion yuan large fund phase three is still stimulating.

... For semiconductors, Bian Huizong of "Learning and Doing" has been tracking and researching in depth for a long time.

He recently stated that the targets with multiple factors superimposed in the semiconductor field still become the benchmark for emotions.

Semiconductors still have opportunities to repeat under the support of the expansion cycle and the large fund phase three.

Behind this round of semiconductor market, there are many funds participating in the layout, such as speculative capital, foreign capital, domestic institutions, etc.

In addition, listed companies themselves are also buying and buying, that is, repurchasing shares.

Let's continue to talk about the capital side below, what kind of targets they prefer.

For example, the power semiconductor company Kaiwei Te has the attention of both speculative capital and institutions.

On July 19, the company's stock price closed a "20cm" limit-up board.

On that day, Guangfa Securities Guangzhou Tianhe Road bought more than 7 million yuan, and an institutional special seat bought more than 6 million yuan.

Foreign capital, including Northbound funds, is also buying and buying.

Since July, more than 60% of semiconductor companies have received net purchases from Northbound funds.

Many individual stocks are being bought on one hand and their stock prices are rising strongly on the other.

For example, since July, Tuo Jing Technology has been net purchased for 18 million yuan, and its stock price has rebounded from the bottom since July, with a cumulative increase of more than 10%; and Jingfang Technology, since July, has been net purchased for 15 million yuan, and its stock price has also rebounded from the bottom since July, with a rise of nearly 10%.

There are also many semiconductor companies with net purchase amounts exceeding a "small goal" (100 million yuan), such as a leading AI chip company, which has been net purchased for 248 million yuan, and its stock price has risen by 35% since July, and set a new high in nearly four years; a leading storage chip company, which has been purchased for more than 1 billion yuan, has risen by 10% since July, and its stock price has also reversed on the right side and set a new high in nearly a year.

Let's continue to focus on the repurchase.

Now, the repurchase of listed companies has become a market fashion phenomenon.

Based on undervaluation or based on the logic of looking forward to future opportunities, semiconductor companies have also been intensively repurchasing this year.

Looking at some individual stocks, the more active the repurchase, the stronger the stock price rises, and the more obvious the abnormal movement.

For example, Xin Jie Neng, its new round of repurchase has reached 1.0296 million shares by the end of June, costing 37.29 million yuan.

The company's stock price closed a limit-up board on July 19 and set a new high in nearly a year; and again, Xin Lian Integrated Circuit, by July 3, had repurchased 77.31 million shares, costing 300 million yuan.

The company's stock price is still relatively low, but there are signs of starting to rise recently.

Let's not expand on it here.

Here are the semiconductor companies with the highest repurchase amount since the second quarter, such as Jing He Integrated Circuit, Hai Guang Information, Ge Ke Micro, Wei Er Shares, etc., with repurchase amounts exceeding 100 million yuan.