HK Stock Market Move | The long-term trends of the AI hardware industry remain supported. XIZHI TECH-P (01879) and Suzhou Dongshan Precision Manufacturing (02384) both rose more than 7%.

Hong Kong AI hardware stocks rebounded this morning. As of press time, XIZHI TECH-P (01879) rose 7.71% to HK$149.5; Suzhou Dongshan Precision Manufacturing (02384) rose 7.26% to HK$81.3; YOFC (06869) rose 6.1% to HK$91.3; Cig Shanghai (06166) rose 4.23% to HK$54.3; Victory Giant Technology (02476) rose 4.98% to HK$113.8. On the news front, U.S. stocks rebounded last Friday, driven by oversold chip stocks, with the Philadelphia Semiconductor Index surging 4.2%. Previously, after the U.S. midterm elections, Democrats won victories in multiple state-level races, triggering market concerns that the policy environment for data center construction could tighten. In response to the market adjustment, Dan Bin, chairman of Oriental Harbor, said on social media that Thursday's U.S. stock selloff was "a temporary shock, but judging from this that the AI era has ended, I think the probability is extremely small." U.S. President Trump said he supports artificial intelligence 100%. Soochow believes that the recent adjustment in optical module, PCB and upstream component names is also at the level of market trading and expectations, pessimistic expectations have been fully reflected, and it should not be included in the industrial supply-side narrative. The bank observed a positive signal: in 26Q4, the PCB sector is expected to continue improving sequentially on the back of mass deliveries of new platforms, upstream passive components for optical communications remain tight in terms of pull-in demand, and optical module manufacturers are also expected to sustain relatively good performance. There may be a certain expectation gap between marginal catalysts on the industry side and current market expectations.