Surging Over 16%! $200 Billion Giant Suddenly Erupts! Chip Stocks Collectively Surge!

Semiconductors Surge!

On the afternoon of March 16, the ChiNext Index rose over 1%. The semiconductor and memory chip sectors continued to climb. Among them, Huahong company’s A-shares, with a total market value exceeding 200 billion yuan, once surged over 16%, and its H-shares rose over 11%. The entire semiconductor sector was driven higher, with chip ETFs soaring in the afternoon, reaching an increase of over 2% at one point.

Analysts believe that although there are continuous positive rumors involving Huahong, the upcoming GTC 2026 conference hosted by NVIDIA may also be a major catalyst for the semiconductor sector. Additionally, news reports indicate that wafer foundries such as UMC, World Advanced, and Powertech are raising prices, which has become another driving factor.

Continuous Good News for Semiconductors

In the afternoon, Huahong continued to rise, and other semiconductor stocks also gained momentum. Zhaoyi Innovation hit the daily limit, with Langke Technology, Yingxin Development, and Taiji Industrial also hitting the limit. Jinyang Solar, Guoke Micro, Yachuang Electronics, and Baiwei Storage all rose over 10%. In Hong Kong stocks, Zhaoyi Innovation and Lankeng Technology rose over 7%, with SMIC and Jingmen Semiconductor also gaining.

The GTC 2026 conference will be held from March 16 to 19 in San Jose, California. Information shows that OpenAI, Google DeepMind (GOOGL.US), Meta (META.US), Microsoft (MSFT.US), and Tesla (TSLA.US) will participate in key stages or major segments. GF Securities believes that this event could serve as a catalyst not only for NVIDIA but also for the entire semiconductor sector. NVIDIA is expected to showcase its second-generation co-packaged optical (CPO) switches.

Furthermore, rumors of price hikes continue. First, major international chip design companies such as Texas Instruments, NXP, and Infineon have recently notified customers of upcoming price adjustments, announcing increases in some product prices starting April 1. Today, reports also indicate that mature process wafer foundries like UMC, World Advanced, and Powertech may raise prices as early as April, with increases of up to 10% or more.

Everbright Securities points out that the semiconductor industry is entering a new AI-driven cycle. Generative AI, agent-based AI, and physical intelligence are driving demand for chips across consumer (AIPC/phones), enterprise (AI servers), and industrial (autonomous driving) sectors. With the certainty of expanding storage chip capacity, geopolitical factors are deeply reshaping the industry chain, accelerating domestic substitution in mature fields. Domestic companies are gradually breaking international monopolies through technological upgrades and capacity expansion, injecting new growth momentum into the industry.

Is Liquidity Under Pressure?

Today, growth stocks performed well, partly due to the decline of the US dollar index. So, has the liquidity volatility caused by Middle East conflicts ended?

Huatai Securities believes that since the outbreak of the US-Iran conflict on February 28, energy prices have risen sharply, and financial markets have adjusted in an overall orderly manner. However, considering the unprecedented complete blockade of the Strait of Hormuz and the possibility that it may last longer than expected, there is a risk that the impact could approach historical extremes.

Previously, the market assumed the conflict would be quickly resolved. Recently, both the US and Iran have taken further escalation measures, leading the market to incorporate expectations of higher oil prices with greater stickiness. The forward oil price curve has shifted upward overall, but panic levels seen during previous high-intensity shocks have not reappeared. Since the “epicenter” and blockages are in the Middle East, this high oil price situation differs from past events. It not only does not increase oil dollar supply but also significantly disrupts the oil dollar cycle, further strengthening the US dollar, tightening liquidity, and putting additional pressure on entities with high dollar loan exposure.

CGS International also believes that the longer the Strait of Hormuz remains closed, the greater the risk of economic turmoil and market pressure. “We should not take this lightly,” analyst Lim Siew Khee wrote in a report. “Currently, stock market valuations are high, and credit spreads are tight. Continued disruptions could trigger a 10%–15% correction in the stock market.” Although the US government may seek to de-escalate, the risk of escalation remains.

Notably, Mitsubishi UFJ Research & Consulting states that measures by the Trump administration to reopen the Strait of Hormuz may not be very effective.

In a research report, Mitsubishi UFJ said: “From Iran’s perspective, seeking more advantages is entirely reasonable, including pushing up oil prices to cause more pain to the global and US economies.” Additionally, the US Navy has yet to escort ships through the strait, and ironically, they are openly seeking help, which indicates that there may be significant difficulties in doing so.

Mitsubishi UFJ added: “Only when credible ships are seen passing through without incident will shipping and insurance companies have more confidence to allow vessels to transit the strait.”

Layout: Luo Xiaoxia

Proofreading: Su Huanwen