September 1st - Hong Kong semiconductor stocks opened higher, with SMIC rising nearly 7% and reaching a record high stock price. Hua Hong Semiconductor gained over 5%, while Horizon Robotics advanced more than 1.5%.

The domestic computing power sector is experiencing another wave of intensive catalysts. First, Alibaba's earnings exceeded expectations, with particularly impressive 26% cloud revenue growth in Q2FY25. Regarding capital expenditure, Alibaba's latest quarterly capex of 38.6 billion yuan also significantly surpassed expectations, while the company emphasized its unwavering commitment to 380 billion yuan in capex over three years, boosting confidence across the industry chain. Additionally, SMIC was suspended from trading due to an announcement regarding the acquisition of equity stakes in SMIC North. Recent semiconductor trading suspensions and mergers and acquisitions (such as Hua Hong Company and VeriSilicon Holdings) reflect optimistic expectations for domestic computing power behind the scenes. From a market perspective, compared to overseas computing power chains, the domestic computing power sector still has considerable room for growth. Going forward, investors can seek low-position catch-up opportunities in several major directions including upstream materials for domestic computing power, cloud services, and downstream applications.