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U.S. chip stocks staged a mild rebound on July 20: the Philadelphia Semiconductor Index closed up 3% at 12,024 points. NVIDIA, TSMC, Broadcom and Micron all posted gains, with memory stocks leading the rally — SK Hynix rose 4.15% and Sandisk climbed 3.78%. JPMorgan argued it is too early to call a pricing inflection point for semiconductors.
Anthropic tests AMD’s AI GPUs: Semiconductor research firm SemiAnalysis identified clues in public GitHub code indicating Anthropic may adopt AMD AI GPUs, signaling potential shifts in the competitive landscape of AI chips.
Sustained strong prosperity in optical communications: Eoptolink stated mass production of 1.6T optical modules will accelerate in Q3 and Q4, while silicon photonics penetration keeps rising; NPO products are expected to launch commercial shipments in the second half of 2027. Lumentum and Coherent gained 2%–3% in U.S. pre-market trading.
Earnings delivery for domestic semiconductor equipment players: Han’s Laser recorded H1 net profit of RMB 1.286 billion, jumping 163% year-on-year and 163% quarter-on-quarter in Q2. Wavelength Opto-Electronics projected H1 profit growth of 83%–104%, with Q2 sequential growth hitting 201%–248%, further validating robust momentum across the equipment segment.
GF Securities believes conditions are ripe for an A-share rebound: Chief Strategist Liu Chenming noted the current correction depth has exceeded the historical average. Broad-based equity ETFs logged their third-largest weekly net inflow of the bull market, marking the opening of the second major allocation window this year.
In-depth Analysis
Optical Communication & Optical Chips：Eoptolink released its investor meeting minutes, disclosing that volume shipments of 1.6T optical modules will accelerate in Q3 and Q4, while 800G products have become the main revenue contributor. The market share of silicon photonics solutions keeps rising, and commercial mass production of NPO is expected to kick off in H2 2027. On U.S. stock markets, Lumentum rose over 3% in pre-market trading, while Coherent and Corning gained more than 2%. The optical communication sector stays highly prosperous amid continuous expansion of AI computing capital expenditure. No other major updates on optical chips or CPO emerged today.
Advanced Packaging：No notable developments today. The market is still digesting ASE Group’s over 20% price hike for advanced packaging services including CoWoS and FoCoS, effective July 1. Domestic manufacturers such as JCET and Ningbo SMT keep ramping up their homegrown advanced packaging capacity.
SiC & Third-Generation Semiconductors：No major updates today. Bosch’s first U.S.-based SiC semiconductor plant, with a total investment of USD 2 billion, recently launched trial production. The domestic SiC industrial chain continues to penetrate automotive-grade application scenarios.
Memory & Computing Chips：Memory stocks led the rebound on U.S. markets on July 20: SK Hynix climbed 4.15%, Micron 3.99% and Sandisk 3.78%. News that Anthropic is testing AMD’s AI GPUs drew widespread attention. If Anthropic becomes an AMD client, it will break NVIDIA’s absolute dominance in AI training chips and unlock new growth avenues for AMD. Aili Home plans to spend no more than RMB 650 million to acquire no less than a 77.08% stake in Oukono, a memory testing equipment supplier, marking its cross-border entry into the memory testing track.
Semiconductor Equipment & Materials：Han’s Laser released its H1 performance flash report, recording operating revenue of RMB 13.413 billion, up 76.19% year-on-year, and attributable net profit of RMB 1.286 billion, a 163.47% YoY jump. Orders and revenue surged across multiple segments including PCB dedicated equipment, consumer electronics equipment, lithium battery equipment and semiconductor gear. Q2 net profit hit RMB 932 million, rising 163% quarter-on-quarter. Wavelength Opto-Electronics projected H1 profit growth of 83%–104%. The firm advances its "Optics Plus" strategy focusing on semiconductors and related industries, benefiting from AI-fueled downstream demand, with Q2 net profit up 201%–248% sequentially. Semiconductor equipment ETFs have sustained counter-trend net subscriptions, confirming solid fundamental momentum for the equipment sector.
Policy & Macro Environment：Shenzhen launched a major industrial ecosystem fund with an overall scale of RMB 10 billion (first tranche at RMB 3.94 billion), targeting the "20+8" strategic emerging industries including semiconductors & integrated circuits, artificial intelligence and smart terminals. A Goldman Sachs report revealed hedge funds dumped U.S. tech stocks at a record pace, logging net outflows in six out of eight weeks with aggregate position cuts of roughly 10%. Nevertheless, JPMorgan stated meaningful supply expansion will not arrive until 2028, arguing it is premature to call a semiconductor pricing inflection point and recommending investors re-enter the sector this summer. Liu Chenming, Chief Strategist at GF Securities, said conditions are ripe for an A-share rebound. The ChiNext & STAR Market indices have corrected over 20%, exceeding the historical average. Weekly ETF net inflows hit the third highest peak of the current bull market, opening the second major allocation window of the year. China Merchants Securities commented that the current correction is structural deleveraging after excessive crowding in the single tech theme, rather than a systemic crisis.
Daily Investment Tips
1. Opportunities amid market divergence：U.S. chip stocks rebounded on July 20, yet Goldman Sachs data shows hedge funds are still systematically reducing holdings, intensifying long-short battles. Both JPMorgan and GF Securities believe the correction is drawing to a close, though investors should watch Federal Reserve policy signals and geopolitical risks. The memory sector demonstrated stronger resilience amid the pullback (SK Hynix surged over 8% against the market trend), and investors are advised to focus on structural opportunities across the memory industrial chain.
2. Optical communications boast the highest certainty：Driven by ramp-up of 1.6T modules, rising silicon photonics penetration and a clear NPO technology roadmap, optical communications stand out as one of the most certain high-growth segments within the AI computing supply chain. Manufacturers including Eoptolink, Lumentum and Coherent will keep reaping benefits.
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