A-share technology stocks saw a succession of upward earnings forecast revisions and share buyback announcements, while Google announced a major breakthrough in quantum computing. TSMC raised its fourth-quarter revenue guidance to a level above market expectations.
Upward revisions to first- through third-quarter earnings forecasts and share buyback announcements concentrated in China's A-share technology sector. Multiple semiconductor, optical communications and AI chip companies indicated expectations for substantial profit growth, while a succession of shareholder-friendly capital return measures was announced.
Among individual companies, Longsys expects net profit of ¥14.0 billion–¥14.9 billion, representing an anticipated year-on-year increase of 1864%–1991%, while Accelink Technologies expects net profit of ¥1.189 billion–¥1.31 billion and Shennan Circuits expects ¥4.05 billion–¥4.15 billion. All three companies presented forecasts for higher profit.
Regarding share buybacks, the controlling shareholder of Eoptolink Technology proposed a buyback of approximately ¥800 million–¥1.0 billion. Zhongji Innolight is considering a share buyback on the condition that all repurchased shares are cancelled, with the amount expected to reach approximately ¥5.0 billion.
Overseas, Google's quantum AI team reported a breakthrough involving the Willow processor in a paper published in Science. Magic-state cultivation reduced the error rate and produced a T state with logical fidelity of 99.99%. The development is said to have the potential to reduce the resources required for fault-tolerant quantum computing.
Following its earnings announcement on 15 October, TSMC provided fourth-quarter revenue guidance of $52.3 billion–$54.3 billion, significantly above market expectations. Sustained growth in AI demand and tight supply capacity were the focus of attention.