NVIDIA plans to invest $3 billion for an equity stake in Meta, deepening Muse large model cooperation; TSMC plans to raise CoWoS packaging quotes by up to 20%

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① Nvidia plans to invest $3 billion to take a stake in Meta, deepening Muse large-model cooperation;

② TSMC plans to raise CoWoS packaging quotes by up to 20%, with advanced packaging capacity remaining persistently tight;

③ Shanghai issues an action plan to accelerate the development of next-generation smart manufacturing, speeding up the upgrading of the smart manufacturing industry;

④ PCB stocks such as WUS Printed Circuit posted high third-quarter earnings growth, as the boom in AI computing hardware is realized;

⑤ 21 listed banks disclosed interim dividend plans, with high-dividend assets attracting capital;

⑥ CATL: All-solid-state batteries are expected to achieve small-batch production in 2027.

Market review

On October 27, the three major A-share indices opened higher and closed lower. The Shanghai Composite Index fell 1.33% to 3,648.30 points, the ChiNext Index fell 3.41%, and combined turnover across the Shanghai, Shenzhen and Beijing markets was 1.46 trillion yuan, down about 150 billion yuan from the previous day. Banking and consumer sectors bucked the trend and strengthened, with ICBC and China Construction Bank hitting new highs again, while semiconductors and computing hardware sectors led the declines.

Nvidia plans to invest $3 billion to take a stake in Meta, deepening Muse large-model cooperation

On October 27, Nvidia announced an expansion of its cooperation with Meta in the AI assistant Muse and related large-model fields, and a $3 billion equity investment in Meta. Meta will expand deployment of next-generation infrastructure including Nvidia's Vera Rubin architecture, Vera CPU, Spectrum-X Ethernet and BlueField-4. Meta previously announced plans to raise about $95 billion to support AI infrastructure investment.

Huatai Securities noted that the AI industry is shifting from large-model pre-training to commercialization of AI Agents. Task scheduling and browser operations are raising demand for CPUs and storage, while always-on cloud environments are simultaneously driving inference computing power. It recommends paying attention to CPUs, cloud/IDC infrastructure, and application-layer platforms with large-scale user entry points and ecosystem integration capabilities.

Key stocks

Kingsoft Office: The company is a leading domestic office software provider. WPS AI 3.0 and the "Lingxi" native office agent have already been commercialized at scale, covering documents, spreadsheets, PPT and enterprise knowledge base scenarios. AI subscription revenue is accelerating, and the stock is covered by brokerage research reports from Zheshang Securities, Guohai Securities and others.

iFlytek: The company is a core player in the Spark large model, and its Xingchen Agent development platform and agents for education, healthcare and government affairs continue to be deployed, with MaaS and Agent ecosystem commercialization continuing to accelerate.

TSMC plans to raise CoWoS packaging quotes by up to 20%

According to a report by Taiwanese media on October 27, driven by an explosion in AI demand and comprehensive tightness in semiconductor supply chain capacity, TSMC and other wafer foundry and packaging and testing companies are preparing to raise CoWoS packaging quotes by up to 20%. CoWoS is widely used in high-end AI processors, and demand has extended from GPUs to server CPUs and custom ASICs. TSMC's monthly CoWoS capacity is expected to exceed 130,000 wafers in 2026.

Sinolink Securities noted that in the post-Moore era, chip performance competition is shifting from advanced processes to system integration, and advanced packaging has become a core mainline for computing power growth. Rising AI capital expenditure is driving continued explosive demand for CoWoS, and domestic packaging and testing companies are accelerating adoption.

Key stocks

JCET: The company is a major semiconductor packaging and testing company and has deployed advanced packaging platforms such as XDFOI high-density fan-out. It is listed by Sinolink Securities research reports as an advanced packaging stock to watch.

Tongfu Microelectronics: The company is a major semiconductor packaging and testing company and is deeply tied to AMD in high-performance computing packaging. It is listed by Sinolink Securities research reports as a stock to watch.

Shanghai issues an action plan to accelerate the development of next-generation smart manufacturing

The Shanghai Municipal Commission of Economy and Informatization on October 27 issued the "Shanghai Action Plan for Accelerating the Development of Next-Generation Smart Manufacturing," proposing that by 2028 the city achieve full coverage of smart factories among key manufacturing enterprises, cultivate 500 advanced-level smart factories, make breakthroughs in more than 2,000 AI application scenarios in manufacturing, launch more than 300 high-level agents, promote the entry of 8,000 humanoid robots into factories, and expand the scale of the AI-empowered new smart manufacturing equipment industry to more than 200 billion yuan.

Galaxy Securities noted that the machine tool industry is seeing a resonance of demand recovery and import substitution. AI capital expenditure is driving up processing demand for precision structural parts and other products. Combined with stricter approval for exports of overseas high-end machine tools, domestic machine tools are gaining more validation scenarios with customers. It recommends paying attention to industrial mother machine-related stocks.

Key stocks

Kede CNC: The company is a major five-axis simultaneous CNC machine tool company, with products aimed at high-end manufacturing. It is expected to benefit from demand for smart manufacturing equipment and is listed by China Galaxy Securities research reports as a machine tool stock to watch.

Inovance Technology: The company is a major industrial automation company, covering industrial robots, industrial control and other segments, and is covered by Guosen Securities research reports.

PCB stocks such as WUS Printed Circuit posted high third-quarter earnings growth

On October 27, WUS Printed Circuit disclosed its third-quarter report. Net profit attributable to shareholders in the first three quarters was 5.622 billion yuan, up 106.87% year on year, including single-quarter net profit of 2.699 billion yuan in the third quarter, a record high for a single quarter. Nan Ya New Material's third-quarter net profit rose 1,295.94% year on year. Driven by AI computing demand, earnings across the PCB industry chain are generally surging.

Sinolink Securities noted that iteration in AI servers and high-speed switches is pushing PCBs toward higher layer counts and higher-order HDI. Growing demand for high-end copper-clad laminates is driving product mix upgrading, and profit improvement across the PCB industry chain is expected to continue.

Key stocks

WUS Printed Circuit: The company is a major PCB company, with strong demand for high-speed switch and AI server PCBs. Net profit in the first three quarters rose 106.87% year on year, and it is listed by Sinolink Securities research reports as a stock to watch.

Nan Ya New Material: The company is a major copper-clad laminate company, with high-end high-speed copper-clad laminates ramping up. Third-quarter net profit rose 1,295.94% year on year, and it is covered by brokerage research reports.

21 listed banks disclose interim dividend plans, proposing dividends exceeding 260 billion yuan

21 A-share listed banks have disclosed 2026 interim dividend plans, proposing total dividends exceeding 260 billion yuan. Among them, the six major state-owned banks uniformly raised their dividend payout ratio from 30% to 31%, proposing total dividends of about 220.989 billion yuan. ICBC proposed dividends of about 53.853 billion yuan, ranking first.

CITIC Securities noted that it maintains its judgment that the banking sector is being revalued from a high-dividend defensive asset to a high-certainty equity asset. It expects industry ROE to stabilize at 8% to 9% this year and next, and absolute return space for the full year will continue.

Key stocks

ICBC: The company is a major state-owned large bank, proposing interim dividends of about 53.853 billion yuan, the highest among listed banks.

China Merchants Bank: The company is a major joint-stock bank, with outstanding advantages in wealth management and retail business.

CATL: All-solid-state batteries are expected to achieve small-batch production in 2027

CATL said on the investor interaction platform on October 27 that it continues to invest firmly in all-solid-state batteries, its technology is at an industry-leading level, and small-batch production is expected in 2027. In addition, the company's capacity utilization rate will remain at a relatively high level and in a relatively healthy state.

Huatai Securities noted that the focus of solid-state battery industrialization is shifting from "materials science" to "production engineering." From 2026 to 2027, multiple catalysts are expected, including automotive-grade installation tests, GWh-level production line tenders and interim acceptance. Equipment investment per GWh for all-solid-state production lines is significantly higher than for liquid production lines, and order visibility is improving in dry electrodes, isostatic pressing, stacking and high-voltage formation and grading. It recommends paying attention to solid-state battery equipment, sulfide electrolytes and core material suppliers.

Key stocks

Shanghai Xiba: The company is a major player in solid electrolytes and core materials such as lithium sulfide, covering sulfide and oxide technology routes, and has achieved small-batch delivery of solid electrolytes and silicon-carbon anodes.

Nakonor: The company is a major player in front-end solid-state battery equipment, with a clear position in dry electrodes, isostatic pressing and electrolyte film-forming transfer processes, adapting to all-solid-state production line construction needs. Order visibility is improving as pilot lines move to mass production, and it is covered by Huachuang Securities research reports.

(Source: East Money Research Center) Middle of the article Embedded advertisement