As the A-share market braces for the 4000-point level, high-quality stocks have become the primary focus of market attention. These outperformers are concentrated in specific sectors. Disclosed 2025 annual reports indicate that the storage and AI computing power sectors have already achieved rapid earnings growth, with numerous companies reporting doubled profits.

With the first quarter of 2026 drawing to a close, veteran market analyst Peng Zu stated that the storage and AI computing power sectors are expected to maintain high growth momentum in Q1, continuing their trend of substantial earnings increases. The large-scale implementation of AI technology and profound adjustments in the global industrial supply-demand dynamics are jointly driving these two sectors into a period of significant profit realization.

The sustained earnings growth in storage and AI computing power is evident. While only 140 A-share companies have officially released their 2025 annual reports as of this Thursday, over 3,000 companies have provided preliminary forecasts through performance pre-announcements. Statistics reveal that both the AI computing power and storage sectors achieved remarkable profit growth in 2025.

Among individual stocks, AI computing power concept company Cambricon Technologies disclosed its full 2025 report on March 13. Benefiting from persistently rising demand for computing power in the AI industry, the company expanded its market presence through competitive products and advanced the implementation of AI application scenarios. It reported annual revenue of 64.97 billion yuan, a substantial increase of 453.21% year-over-year, and successfully turned a profit with net income attributable to shareholders of 20.59 billion yuan.

Another AI computing power leader, InnoLight Technology, reported preliminary 2025 revenue of 382.4 billion yuan, up 60.25% year-over-year, and net profit attributable to shareholders of 107.99 billion yuan, surging 108.81%. This strong performance was primarily driven by robust investment in computing infrastructure by end customers, rapid growth in product shipments, and an increasing proportion of high-speed optical modules. Continuous optimization of product solutions and improved operational efficiency contributed significantly to the revenue and profit growth.

In the storage sector, BIWIN Storage reported a business revival and substantial growth. Seizing the industry's upward trend, the company aggressively expanded its global key client base, achieving breakthroughs in market and business development with a sharp rise in product sales. Revenue for the period reached 112.96 billion yuan, up 68.72% year-over-year, while net profit attributable to shareholders soared 437.56% to 8.67 billion yuan.

As the first quarter concludes, Peng Zu, host of 'The Era of Major Trends', indicated that AI computing power and storage will remain highly prosperous in Q1 2026, with both sectors expected to report significant growth. On March 4, BIWIN Storage pre-released its January-February performance, projecting revenue between 40 and 45 billion yuan, an increase of 340% to 395% year-over-year, and net profit attributable to shareholders between 15 and 18 billion yuan, skyrocketing 921.77% to 1086.13%. The company attributed this to a highly favorable cycle in the storage industry, driven by AI computing demand and domestic substitution, which continue to push DRAM/NAND prices higher amid supply shortages.

The exceptional growth in the storage sector is fundamentally catalyzed by AI-driven demand and global supply-demand imbalances. On the demand side, AI servers' need for storage is growing exponentially, becoming the core driver of the sector's recovery. Gartner forecasts global AI server shipments to exceed 1.5 million units in 2026, a year-over-year increase of over 180%. AI servers require 8 to 10 times more storage than traditional servers, leading to total demand for storage chips surpassing 12 million units—far exceeding the global production capacity of 8 million units in 2025, creating a supply gap of over 30%.

Rigid constraints on the supply side have further intensified tightness in the storage market, triggering historic price surges. Global inventory cycles in the storage industry have dropped to historical lows, with supply constraints expected to persist until 2027.

Compared to storage, the high growth in the AI computing power sector stems more from explosive demand and structural supply shortages. The comprehensive rollout of AI applications is fueling a surge in computing power demand. The proliferation of AI Agents, in particular, is shifting demand from sporadic peaks to sustained levels, with multi-turn task calls and tool interactions causing token consumption to rise exponentially. Weekly token usage in China reached 46.9 trillion in March alone, surpassing levels in the US market.

Supply constraints in the AI computing power产业链 are concentrated in core chips and high-end components. Capacity for high-end AI chips from international giants like NVIDIA and AMD is limited, and tight advanced process capacity hinders rapid supply expansion. While domestic AI chipmakers like Moore Threads, MetaX, and Biren Technology are accelerating breakthroughs and commercialization after entering capital markets, gaps in technological maturity and software ecosystems compared to international leaders mean supply shortfalls will be difficult to bridge in the short term.

Institutional capital is highly focused on these areas. Peng Zu noted that storage has become the most crowded segment within the AI theme. Based on institutional holdings data from the end of Q3 2025—since annual reports are not fully disclosed—companies like GigaDevice, NAURA Technology Group, and Montage Technology each attracted attention from over a hundred institutions. GigaDevice was held by 531 institutions. Notably, prominent individual investor Ge Huidong has been a significant shareholder in GigaDevice for 21 consecutive reporting periods since Q3 2020.

Similarly, among the top ten shareholders of storage concept stock Fabulous, both Zhao Jianping and Zhao Ji appeared, with both increasing their holdings in Q3 2025—by 70,000 shares and 600,000 shares respectively.

In the secondary market, Fabulous has seen impressive gains, rising over 200% since late July last year.

AI computing leaders such as TFC Optical Communication, Sugon, Envicool, and Inspur Information have also attracted substantial institutional interest, each held by over a hundred institutions at the end of Q3 2025. For instance, seven of TFC Optical Communication's top ten shareholders at the end of Q3 2025 were public funds, and the company was also heavily held by Hong Kong Securities Clearing Company through the Stock Connect program.

(Mentioned stocks are for analysis purposes only and not investment recommendations.)