Chip stocks rebounded in the morning, with reports that the US is considering restricting the sale of AI chips to some countries. The agency said it expects AI and domesticization to drive semiconductor demand.

Chip stocks rebounded in the morning. As of the time of writing, Quanxinhao (02878) rose 5.36% to HK$0.59; Shanghai Fudan (01385) rose 4% to HK$17.16; SMIC (00981) rose 2.81% to HK$27.45; Huahong Semiconductor (01347) rose 1.3% to HK$23.45.

On the news front, according to media reports, the US government discussed restricting Nvidia and other US companies from selling advanced AI chips to certain countries. The new scheme would set a cap on export licenses for some countries. Sources said officials were focusing on Gulf countries, which have shown growing interest in AI data centers and are well-funded.

CITIC Securities believes that the semiconductor cycle has been significantly repaired in the past year under the promotion of cloud computing power and storage price hikes. At present, it is in a mild recovery state. Looking ahead to 2025, the global semiconductor industry scale is expected to continue to grow, and the high prosperity of cloud computing power is expected to continue, and we look forward to the end-side AI becoming a new growth point to drive the semiconductor industry to continue to rise. The domestic semiconductor industry, as the bottom layer of the production force of technological quality, is expected to perform better in the next stage under the promotion of policy support, cycle reversal, incremental innovation, and domestic substitution on multiple fronts.