Another 10x Stock Born! List of Quality Defensive Stocks Released

The AI industry trend is clear.

Just now, another ten-bagger

On the morning of March 19, the computing power sector continued to surge. By the close of trading, Copper Bull Information’s “20cm” hit the daily limit up, while Litong Electronics, Lotus Holdings, Meiliyun, and others also hit the limit up. Hongjing Technology rose over 15%, and Dongfang Guoxin, Runze Technology, and others gained more than 3%. Among them, Hongjing Technology (301396) reached a new all-time high, more than ten times its low point in 2024.

In addition to Hongjing Technology, which hit a new high as a ten-bagger, Nanya New Material (688519), also part of the computing power industry chain, reached a new all-time high this morning, with its stock price more than ten times higher than its low in 2024.

Furthermore, the third-highest priced stock in A-shares, Yuanjie Technology (688498), also hit a new all-time high this morning, reaching a peak of 975 yuan during the trading session, achieving a ten-bagger journey in just over 11 months. In April 2025, the stock’s lowest price was less than 88 yuan (adjusted for splits).

Recently, the computing power industry chain has seen frequent positive news. On March 18, Alibaba Cloud announced that due to explosive global AI demand and rising supply chain costs, it will increase prices for AI computing, storage, and other products, with some products seeing a maximum increase of 34%.

Domestic hardware for computing power has also made breakthroughs. Shanxi Securities reports that domestic chip manufacturers such as Huawei Ascend, Cambrian, Hygon Information, and Kunlun Chip are accelerating to catch up with NVIDIA in single-card performance. Huawei’s flagship can now compare to the H100, and through innovative super-node architecture, it is competing with NVIDIA’s rack-level solutions. Additionally, domestic chipmakers are building ecosystems by supporting both CUDA compatibility and self-developed solutions, gradually breaking through CUDA ecosystem barriers. They are also speeding up solving supply chain issues like wafer foundry, promoting rapid growth of domestically produced chips.

Institutions recommend focusing on the computing power sector

Shanxi Securities further states that they remain confident in AI industry chain investment opportunities through 2026. In terms of computing power, major domestic clients continue to increase procurement of domestic AI chips. Leading domestic manufacturers are accelerating in single-card performance, rack-level solutions, ecosystems, and capacity, aiming to quickly capture market share from NVIDIA.

Hualong Securities notes that multiple favorable factors support the market. Industry and thematic allocations include: 1) growth sectors like technology and advanced manufacturing; 2) boosting and expanding domestic demand; 3) “anti-involution” and supply-demand changes. Themes of interest include the “14th Five-Year Plan,” AI+, commercial space, low-altitude economy, and humanoid robots.

Datong Securities states that, in the short term, external factors may cause increased market volatility, but in the medium to long term, as geopolitical conflicts weaken, China’s market stability is expected to offset external shocks, supporting long-term market growth. A-share allocation suggestions include focusing on structural opportunities in sectors like computing power and communications, while paying attention to resource category changes.

Can high-quality, resilient stocks continue to outperform?

The A-share market has recently experienced noticeable adjustments, but structural opportunities in tech stocks, especially those related to the AI industry chain, still exist. The three previously mentioned ten-bagger stocks reaching new highs highlight the trend of investment opportunities aligned with industry trends. Industry insiders believe that high-quality tech stocks that have shown resilience recently, due to the absence of trapped positions, are more likely to continue strengthening.

According to Securities Times and Data Treasure, among the electronics, communications, and computer sectors, 42 stocks are rated by five or more institutions, with their latest prices less than 15% below their one-year highs. Stocks like Beiwei Storage, Jiemei Technology, and Light Optoelectronics have retraced less than 5%.

In terms of institutional attention, stocks like Zhongji Xuchuang and Zhaoyi Innovation have over 30 ratings from institutions, while Beifang Huachuang, Huidian Shares, and Hikvision have over 20.

Tianfeng Securities believes that the demand for AI computing power will continue to grow. Zhongji Xuchuang, a global leader in optical modules, benefits deeply from the rapid growth of the global optical module market. According to Light Counting, the optical module market is expected to reach $23 billion by 2025, driven by large-scale AI computing infrastructure and cloud data center upgrades. The trend toward 1.6T and larger-scale capacity in 2027 will also gradually emerge. The company’s leading R&D capabilities and full-scale production and delivery position it at the forefront of the industry, with revenue and profit expected to continue rising.

(Article source: Data Treasure)