AI demand lifts Shennan Circuits profits, but valuation fears bite
AI-driven PCB upcycle lifts Shennan Circuits Electronic fabric prices jumped 17-18% in August, their biggest monthly gain this year, as AI power supplies squeeze supply. Analysts say the global PCB industry is entering a new upcycle, with server PCB market space set to double to over 90 billion yuan in 2026. Shennan Circuits, a PCB maker, rose over 5% in the sector rally.
This is the core positive force behind the stock: AI demand driving PCB pricing and sector-wide gains.
First-half profit jumps 65.55% on AI orders Shennan Circuits reported first-half 2026 revenue of 15.296 billion yuan, up 46.33%, and net profit of 2.251 billion yuan, up 65.55% year on year. The company credited AI computing infrastructure investment and new customer wins. Second-quarter profit of 1.401 billion yuan beat the midpoint of its own forecast.
Strong earnings confirm the AI demand story is flowing into actual profits, a key support for the stock.
OpenAI revenue miss triggers AI hardware selloff OpenAI's annualized revenue run rate came in about $20 billion below expectations, sparking panic. A-share computing hardware stocks fell hard, with Shennan Circuits dropping more than 6% along with other PCB names. The selloff reflects fears that AI spending may not justify current valuations.
This is the main counterweight: a sharp sentiment-driven drop showing how sensitive the stock is to AI spending doubts.
China GDP slowdown weighs on electronics demand China's second-quarter GDP growth slowed to 4.3%, missing expectations, and the Shanghai Composite fell. Semiconductor and electronic component stocks, including Shennan Circuits, declined as investors worried about weaker demand for electronics. This is a broad economic headwind rather than a company-specific problem.
It shows a macro risk that can pressure demand for Shennan Circuits' products, balancing the bullish AI narrative.