On May 25, the A-share market bottomed out and rebounded. By the morning session close, the ChiNext Index rose over 1%, the STAR 50 Index gained more than 3%, and the STAR Composite Index increased by 2.3%, with 109 stocks across the market hitting the daily upper limit.

The semiconductor and chip sector experienced a full-scale surge. Dongxin Co., Ltd. and Shangluo Electronics hit the 20% limit up. Semiconductor Manufacturing International Corporation surged over 11%, while Cambricon Technologies rose more than 8%, reaching a new historical high. ACM Research (Shanghai) gained over 10%, also setting a new record high, and Huaxing Yuanchuang hit the 20% limit up.

Boosted by significant breakthroughs in Huawei's semiconductor sector, related concept stocks collectively surged to limit up. Jemitech hit the 20% limit up, with its year-to-date increase exceeding 271%. Additionally, Hongzhi Technology and Meiansen hit the 20% limit up, Yunding Technology opened at limit up, and Keda Zhikong briefly rose over 26% during the session.

From an institutional perspective, major securities firms remain optimistic about the semiconductor industry's outlook. CITIC Securities pointed out that the semiconductor industry cycle has reached an inflection point. Driven by domestic substitution and AI innovation, industry prosperity is expected to continue rising. They recommend focusing on leading companies in segments such as equipment, materials, and design, maintaining an "Overweight" rating on the sector. Huatai Securities believes that the launch of the third phase of the National Integrated Circuit Industry Investment Fund will inject strong momentum into the semiconductor industry chain. Expansion in mature process nodes and breakthroughs in advanced packaging technology will become core growth drivers for the sector, suggesting investors accumulate quality stocks on dips.

The PCB concept continued its strong performance. Guangdong Fenghua Advanced Technology(Holding)Co.,Ltd. secured two consecutive limit-ups, reaching a new historical high, while Lotus Holdings achieved three limit-ups in five trading days.

The MLCC concept surged dramatically. Leading stock Fenghua Advanced Technology achieved three limit-ups in five days, also hitting a new historical high, with nearly 420,000 lots bid at the limit-up price. Shuangxing New Materials hit limit up, with Guoci Materials, Torch Electron, and Sunlord Electronics among the top gainers. Founder Securities noted that AI servers are driving a supply shortage in MLCCs, showing signs of price increases. This presents opportunities for domestic substitution in standard MLCC products. They recommend focusing on Sanhuan Group, Fenghua Advanced Technology, and Yunzhong Technology. For upstream raw materials, attention should be on Guoci Materials and Boqian New Materials, and for consumables, Jiemei Technology.

The power sector experienced a volatile upward movement. Jingneng Power achieved six limit-ups in nine trading days.

On the downside, oil and gas stocks plummeted. Tongyuan Petroleum, Keli Shares, and Potential Hengxin all fell nearly 10%. Shouhua Gas, Beiken Energy, Zhongman Petroleum, and Cnooc Energy Technology&Services Limited declined. In related news, both Brent crude and WTI crude oil fell sharply by 6%, and the main crude oil futures contract on the Shanghai International Energy Exchange also dropped 6%.

According to a report by The Washington Post on the 24th, cited by Xinhua News Agency, the United States and Iran have reached an agreement on a framework for a memorandum of understanding. Once signed, shipping through the Strait of Hormuz would be fully restored within 30 days. Additionally, Iran, the United States, and its allies will announce an immediate cessation of military operations on all fronts, including in Lebanon.

(Disclaimer: Article content is for reference only and does not constitute investment advice. Investors assume all risks based on their own operations.)