A-Share Earnings Forecasts Point to AI and Computing Surge

First-half corporate earnings pre-announcements from China's A-share markets show steady operational growth, led by surging demand across the artificial intelligence, computing power, and semiconductor sectors. According to data reported by People's Daily, over 55% of the more than 900 Shenzhen-listed companies disclosing performance forecasts reported earnings expansion or turnaround. The robust guidance from memory and chip firms reflects broader capital expenditure in digital infrastructure and the expansion of high-tech manufacturing clusters on the STAR Market and ChiNext boards.

Earnings forecasts from listed firms offer a practical barometer for China's industrial upgrading and macroeconomic momentum. Strong results among computing and memory hardware leaders indicate that the commercial rollout of artificial intelligence and high-performance computing is feeding real corporate revenues, supported by domestic digital infrastructure investments.

First-half earnings pre-announcements from Chinese A-share listed companies indicate steady operational performance, underpinned by strong expansion in artificial intelligence infrastructure, according to a report by People's Daily. In Shenzhen, more than 900 listed firms have released first-half earnings guidance. Over 55% of these enterprises reported earnings growth or operational improvements, while more than 30% sustained profitability with net profit growth exceeding 50%. Across both the Shanghai and Shenzhen exchanges, companies focused on computing power and memory chips broadly issued positive forecasts. Corporate guidance reflects substantial top-line acceleration among hardware providers. On the Shanghai market, memory provider BIWIN Storage Technology forecast first-half revenue between 15 billion yuan and 16 billion yuan, representing a year-on-year increase of 283.40% to 308.96%, supported by AI computing demand and an industry cyclical recovery. On the Shenzhen market, Ingenic Semiconductor projected first-half revenue of approximately 3.989 billion yuan, up around 77% year-on-year, driven by its dual compute-and-memory product portfolio. Market analysts attribute the performance to compounding cyclical and structural tailwinds. Kong Rong, deputy head of the research institute at Guolian Minsheng Securities, noted that accelerating AI model iterations have generated explosive demand for compute and memory, projecting that supply-demand imbalances will persist as model development continues. Yang Chao, chief strategist at China Galaxy Securities, stated that rising global cloud capital expenditures, large model training and inference requirements, domestic digital economy policies, and prior inventory digestion have supported upstream earnings realization. National Development and Reform Commission data cited by People's Daily indicated that AI-related sectors maintained growth rates exceeding 30%. In parallel, domestic tech boards continue to expand institutional support for advanced industries. The Shanghai STAR Market, which marked its seventh anniversary on July 22, hosts 130 integrated circuit companies spanning design, manufacturing, packaging, testing, materials, and equipment, including leaders such as Hygon Information Technology, Cambricon Technologies, and SMIC. Meanwhile, Shenzhen's ChiNext board reached 1,400 listed firms following the debut of Xinxing Tools on July 30, with high-tech enterprises making up nearly 90% of its roster.