One chapter closes, another opens.

Wu Wei, Investor Network

After the widespread acclaim for 'Yi-Zhong-Tian,' the primary trend in the AI computing power sector has shifted once again. Since June, the PCB (printed circuit board) and copper foil/copper clad laminate sectors in the A-share market have witnessed waves of 'limit-up rallies' or substantial stock price hikes. This unusual activity is underpinned by a global price surge, fueled by upgrades in AI computing power infrastructure specifications, shortages in critical raw material supplies, and the introduction of new technologies (such as glass substrates) into their inaugural year of commercialization, among other factors.

In this round of market fervor, leading companies with advanced production capabilities, such as Wus Printed Circuit (002463.SZ), Shennan Circuits (002916.SZ), and core material supplier Tongguan Copper Foil (301217.SZ), have become the focal point of capital attention. However, amidst the current market exuberance, while investors chase high-performance growth trends, they must also remain vigilant against the pitfalls of chasing highs, potential price corrections following raw material supply recovery, and the risk of temporary oversupply that may emerge from future concentrated capacity releases.

From GPU chips to optical communications and then to fundamental materials, what industrial logic underpins the construction of AI computing power and industry rotation?

Mismatch Between Supply and Demand and Specification Upgrades: The Driving Force Behind Sector Volatility and Stock Price Performance

In the market performance of the first half of 2026, the PCB and materials sectors have showcased remarkable growth in both performance and valuation. Notably, Wus Printed Circuit (002463.SZ) saw its cumulative annual increase surpass 80% at one point, while Shenghong Technology (300476.SZ) experienced a surge of over sevenfold since 2025. Tongguan Copper Foil, buoyed by the price surge, witnessed its stock price triple in just two months.

The core logic behind this robust stock price performance may lie in the 'quantitative to qualitative' leap in AI server specifications. With technological advancements, the AI computing power architecture underwent profound changes in 2026, with PCBs evolving from mere connectors of electronic components to becoming the core bottleneck determining the signal integrity of computing systems.

Previously, PCBs for traditional general-purpose servers were typically 12 to 16 layers. However, with enhanced production expectations for next-generation architectures from companies like NVIDIA (such as the Rubin platform and GB200 system), AI servers now generally require PCBs with 20 to 30 layers or more, with some core backplanes even reaching 40 to 50 layers or more.

The significant increase in layer requirements will undoubtedly enhance the technical premiums for relevant companies. According to research reports from Morgan Stanley and CITIC Construction Investment, with the commercialization of next-generation architectures, the PCB value per high-end AI server could reach 8 to 10 times that of traditional servers.

Furthermore, in the first half of 2026, the PCB upstream experienced a rare supply shortage. In late March, the suspension of production in a Saudi industrial zone, which supplies approximately 70% of the global high-purity polyphenylene ether (PPE) resin, directly triggered a shortage of high-end copper clad laminate substrates, causing some high-end PCB product prices to jump by up to 40% in a single month.

At the same time, leading companies like Tongguan Copper Foil raised their processing fees, with their HVLP (ultra-low profile) series high-end copper foil quotes reaching 10 times those of ordinary copper foils and facing a shortage of spot supplies. Driven by this, leading copper clad laminate companies like Shengyi Technology (600183.SH) saw their market capitalization surpass the 400 billion yuan mark in mid-June.

Domestic and foreign authoritative research institutions have also weighed in on this trend. Prismark predicts that while the overall global PCB output value will maintain a compound annual growth rate of about 5.4% in the coming years, the PCB sector related to AI servers will maintain a compound annual growth rate of over 20% to 30%.

CITIC Securities points out that the demand for high-multi-layer boards (HLC) with over 20 layers will experience explosive growth and may become the most certain track in the industry. Additionally, the Taiwan Printed Circuit Association (TPCA) believes that due to the high investment in high-precision equipment, industry barriers have significantly increased, and market share is rapidly concentrating towards leading manufacturers such as Wus Printed Circuit and Shennan Circuits. From 'outsourced manufacturing' to 'deep integration' in early chip R&D, the business model of the PCB industry is undergoing a thorough transformation.

From Computing Chips to Key Fundamental Materials: The Rotation and Performance Realization of the AI Industry Chain

Since the AI boom erupted at the end of 2022, the capital market has witnessed multiple rotations around computing power infrastructure. The core path may follow the technological development trajectory of 'from core chips to peripheral infrastructure, from hardware support to material innovation.'

Looking back at this wave of AI, the first rotation began in the first half of 2023, with capital first flowing into core computing power chips and model ends, represented by GPU foundries and server complete machine manufacturers such as Foxconn Industrial Internet (601138.SH) and Inspur Information (000977.SZ), which gained market favor; the market logic at the time was to seize the dividends of the initial computing power shortage.

Entering the second half of 2023, the market began to realize that the data transmission speed of computing clusters had become a constraint, leading to substantial performance realizations for optical module (CPO/800G) companies such as ZTE Corporation (000063.SZ) and TFC Communication (300394.SZ). Subsequently, sectors addressing the 'memory wall' and 'thermal wall,' such as HBM (high-bandwidth memory) and liquid cooling solutions, represented by companies like Seagate Technology (603283.SH) and Engley (002837.SZ), took over the baton of growth.

Stepping into 2024 and beyond, the main axis of market rotation officially descended to the fundamental physical level, namely PCBs, copper clad laminates, and key fundamental materials. The performance realization logic at this stage appears even more stringent and technically demanding.

When data transmission rates reach 112Gbps or even 224Gbps, signal loss from traditional materials becomes intolerable. This necessitates PCBs to adopt M7 and M8 grade ultra-low loss copper clad laminates. Meanwhile, due to the 'skin effect,' high-frequency currents tend to flow on the surface of copper foils, and rough traditional copper foils can cause severe signal attenuation. Therefore, HVLP copper foils with a surface roughness of less than 1.5μm have become a mandatory standard for AI computing power.

In this round of material-level market activity, represented by Shengyi Technology and Tongguan Copper Foil, market recognition highly depends on the genuine technical barriers of enterprises. Survey data shows that the capacity utilization rates (operating rates) of leading PCB and copper clad laminate companies have generally exceeded 100%, operating at overcapacity.

Companies that can enter the supply chains of top computing chip manufacturers and possess high-stage HDI and ultra-low profile copper foil mass production capabilities are enjoying substantial performance dividends; while mid-to-low-end manufacturers unable to breach technological gaps face the risk of being marginalized by the market.

Surpassing Physical Limits: New Bottlenecks in Computing Power Development and Future Market Hotspots

Amidst the current AI computing power hype, forward-looking industrial capital has begun searching for next-generation technological paths capable of breaking through physical limits of computing power. When the performance of traditional organic resin materials and ordinary conductive media is pushed to the limit, future market focus will inevitably shift towards more fundamental technological disruptions.

Firstly, the market has set its sights on intergenerational changes in the packaging field—glass substrates. Traditional organic substrates are prone to severe warping issues when dealing with large-area, high-density AI chip packaging. Glass substrates, with their extremely low dielectric loss and highly matched thermal expansion coefficient (CTE) with silicon wafers, are seen as the only solution to this pain point.

As 2026 marks the first year of substantial commercialization for glass substrates, TSMC has established relevant pilot lines, and giants like Intel have clarified their shipping schedules. In the A-share market, the rapid stock price increases of companies like Vigation Optoelectronics (603773.SH), which布局 (layouts) the entire glass substrate industry chain, and Han's Laser (002008.SZ), involved in TGV (through glass via) processing, have begun reflecting the market's optimistic pricing for new technology penetration.

As the power consumption of AI data centers climbs exponentially, power supply and distribution efficiency are gradually becoming the largest physical bottleneck limiting computing power deployment. Market logic is forming a consensus that 'the end of computing power is electricity.' In the future, power infrastructure such as ultra-high voltage equipment, high-speed power supply modules (PSUs), and intelligent power distribution systems may become highly potential incremental links in the industry chain. The photovoltaic and energy storage sectors are also becoming increasingly optimistic as a result.

Currently, the high integration of AI chips imposes extreme requirements on packaging materials. For example, the spherical silica micropowder filler supplied by Union Special (688300.SH) is key to reducing signal loss in high-end AI boards; Wanhua Chemical's (600309.SH) specialty resins and Dinglong Group's (300054.SZ) advanced packaging materials all possess extremely high technical barriers.

These advanced chemicals, currently with low localization rates, harbor significant potential for import substitution driven by supply chain security. The recent stock price performances of companies like Union Special and Dinglong Group also indicate that the market has already made its moves.

Overall, the current volatility in the PCB and copper foil sectors represents a reasonable pricing by capital for the deep restructuring of AI hardware infrastructure. However, with rapid valuation expansion and the dynamic price-to-earnings ratios of leading companies generally rebounding to historical highs, the market is stepping into the 'deep water zone' of transitioning from 'speculative hype' to 'performance validation.'

As investors focus on leading companies with 'technological gaps, customer orders, and self-developed materials,' they should perhaps maintain a sense of restraint and calm, closely tracking the actual implementation of financial report data to avoid the risk of valuation regression after the 'conceptual hype' subsides.

How do you view the extension of the AI industry chain? Welcome to leave comments, share, and forward. (Produced by Sixiang Finance) ■

Source: Investor Network