"AiRong Software & Nvidia Both Soar 10x"

AiRong Software, which started at 9.76 yuan on September 24th, reached a peak of 107 yuan in October, becoming the first stock to gain tenfold in this bull market. In just 15 trading days, the stock price increased by ten times. The speed of the stock's surge is truly more impressive than that of NVIDIA.

However, the surge in AiRong Software's stock price is purely due to market speculation, not supported by any performance. The stock's semi-annual report shows earnings per share (EPS) of only 0.10 yuan, and the net asset value per share is also just 1.80 yuan. The stock's revenue decreased by 7.81% year-over-year, and net profit decreased by 11.6%. Both revenue and profit declined in the first half of the year, making it a tenfold stock that was wildly speculated by retail investors and hot money.

Cambricon was once considered the most promising AI chip stock in the A-share market, dubbed "the future NVIDIA." Unfortunately, since its listing, the company has suffered annual losses. In the first half of this year, the revenue was only 64.7653 million yuan, but the loss amounted to 532 million yuan. Cambricon's loss per share was 2.06 yuan in 2021, 3.14 yuan in 2022, 2.07 yuan in 2023, and 1.27 yuan in the semi-annual report this year.

Cambricon, a stock that loses money every year, has seen its stock price wildly speculated in this market trend, reaching a peak of 503.33 yuan. The bull market for retail investors is indeed well-deserved. At its peak market value, the stock was speculated to be over 200 billion yuan, and it still had a market value of over 170 billion yuan yesterday.

Advertisement

Cambricon is considered a shadow company of NVIDIA, whose current market value is 3.5 trillion US dollars, equivalent to 25 trillion yuan. Cambricon's current market value is only 179.4 billion yuan, which is not even a fraction of NVIDIA's.

As for software stocks, NVIDIA in the US stock market has risen from over 100 US dollars to over 1000 US dollars, taking more than a year to gain tenfold. After a 1-for-10 stock split, the current stock price is 138 US dollars, which is much weaker than that of AiRong Software. Recently, analysts at Bank of America have raised their target price for NVIDIA's stock to 190 US dollars. This means NVIDIA still has significant room for growth.

If NVIDIA can really reach 190 US dollars, its market value will be as high as 4 trillion US dollars, potentially becoming the leader in US technology stocks. According to relevant data, Microsoft is currently the world's largest GB200 customer, with an order volume that has surged 3-4 times in the fourth quarter this year, exceeding the total of all other cloud service providers.

In a new report, Ming-Chi Kuo estimates that shipments in the fourth quarter will be between 150,000 and 200,000 units, and he expects a significant increase of 200% to 250% in shipments in the first quarter of 2025, reaching between 500,000 and 550,000 units.

The tenfold increase in AiRong Software's stock price is actually not supported by performance. The stock closed at 77.29 yuan yesterday, and it will likely fall back to where it started. Regardless of whether it's a bull or bear market in A-shares, there are almost always tenfold stocks every year. Due to the lack of performance support, they all end up in a mess.

A characteristic of A-shares is that the best-performing mainboard has a fluctuation range of 10%, the STAR and ChiNext boards have a range of 20%, and the stocks on the Beijing Stock Exchange have a range of 30%. Does this contradict the concept of "long-term investment"?NVIDIA's market value has reached 25 trillion yuan, while there is not a single technology giant in the A-share market with a market value exceeding 1 trillion yuan. From this perspective, SMIC's latest market value is 765.9 billion yuan. Will it become a technology stock in the A-share market with a market value exceeding 1 trillion yuan in the future?

Chairman Wu Qing said that the world today is undergoing a major change that has not been seen in a hundred years. Our country is at a critical period of moving towards Chinese-style modernization, and the capital market is also at a critical stage of transforming towards high-quality development.

Chairman Wu's words indicate that this bull market in the A-share market is mainly a bull market led by technological development. Of course, it is also a slow bull market led by technology. The Chinese stock market will also have a long-term upward slow bull market. The technology bull is the real bull.