Wall Street collectively turns bullish on chip stocks; watch for the catch-up rally in Semiconductor Equipment ETF Huaxia (562590) after its discount.

As of 10:27 on July 22, 2026, the Huaxia Semiconductor Equipment ETF (562590) rose by 7.16%. Among popular individual stocks, gains and losses were mixed, with Qiangyi Shares leading the gain at 4.90%, Yitang Shares up 1.99%, and Oulai New Materials up 1.67%; while CSSC Special Gas led the decline at -5.99%, Yan'an Silicon fell 4.30%, and Jinhong Gas dropped 3.94%.

In terms of news, some Wall Street analysts believe that after a significant pullback in chip stocks, an excellent entry opportunity has now arrived. Morgan Stanley stated on Monday that the recent sell-off wave in U.S. memory chip stocks presents a good buying opportunity, as the shortage of data center storage chips continues to intensify. UBS and JPMorgan also predict that chip stocks will see a rebound in the near future.

Yesterday, market sentiment remained high, with several semiconductor equipment ETFs hitting the daily limit up while simultaneously trading at a discount. This phenomenon mainly occurs in ETFs that include stocks from the STAR Market and the ChiNext Board. The reason for this is that the price fluctuation limits for individual stocks on the STAR Market and ChiNext are 20%, whereas most ETFs have a maximum daily limit of only 10%. Therefore, when component stocks in these sectors collectively rise by more than 10%, even if the ETF itself hits the daily limit up, its net asset value growth rate may still lag behind the growth in the value of the actual stock portfolio it holds, resulting in the ETF trading at a discount relative to its intrinsic value.

For example, among the component stocks of the Huaxia Semiconductor Equipment ETF (562590), the STAR Market and ChiNext components rose by more than 10%. The Net Asset Value (IOPV) of the Semiconductor Materials ETF Fund units increased by 16.61% compared to the previous trading day's NAV. However, due to the daily limit restrictions, the price increase of the Semiconductor Materials ETF was capped at 10.04%, thus creating a discount. Under normal circumstances, this discount would converge at the opening of the next trading day (today), reflected in that day's price movement.