Understanding the Market | Chip stocks continue recent upward trend, Alibaba announces expansion of AI capital expenditure, Goldman Sachs optimistic about long-term demand growth prospects for Chinese AI chips
Chip stocks continue to rise, with Hua Hong Semiconductor up 5.61%, CE HUADA TECH up 2.5%, SOLOMON SYSTECH up 1.92%, and SMIC up 1.63%. Alibaba plans to invest an additional 380 billion yuan in AI infrastructure, expecting energy consumption to increase tenfold by 2032. Goldman Sachs is optimistic about the long-term demand growth for AI chips in China, and Taiwan Semiconductor and Samsung also plan to raise prices
According to the Zhitong Finance APP, chip stocks continue their recent upward trend. As of the time of publication, Hua Hong Semiconductor (01347) rose by 5.61% to HKD 66.8; CE HUADA TECH (00085) increased by 2.5% to HKD 1.64; SOLOMON SYSTECH (02878) climbed by 1.92% to HKD 0.53; and SMIC (00981) went up by 1.63% to HKD 78.
In terms of news, at the 2025 Hangzhou Yunqi Conference held on September 24, Alibaba Group CEO Eddie Wu stated that they are actively promoting the construction of AI infrastructure worth 380 billion yuan and plan to make even larger investments. Compared to 2022, by 2032, the energy consumption scale of Alibaba Cloud's global data centers will increase tenfold. Goldman Sachs pointed out that the long-term demand growth prospects for AI chips in China will become clearer, benefiting leading domestic foundries like SMIC.
In addition, recent market news indicates that Taiwan Semiconductor is planning to raise prices for its 3nm and 2nm process nodes, with the price of the 2nm process expected to increase by at least 50% compared to the 3nm process. Furthermore, Samsung has significantly raised prices for memory and flash products this week, with DRAM prices increasing by up to 30% and NAND flash prices rising by 5%-10%. Major companies like Micron Technology and SanDisk have also announced similar price increase strategies
