--- title: "AI is bullish!" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40161548.md" description: "$SSE Index(000001.SH) $SSE Composite Index sh000001$ Domestic capital has been fleeing like crazy for two consecutive days, with another net outflow of over seventy billion this morning. Moreover, the "Yi Zhongtian" stocks directly crashed collectively, and the entire optical communication sector has started to catch up with the decline and correct. This is big money taking profits and cashing out at high levels. If you keep refusing to admit that the big players are selling, they will keep selling until you face reality. Many retail investors have a misconception, thinking that as long as the stock price keeps rising and the trend isn't broken, the big players won't leave. Actually, that's not the case at all..." datetime: "2026-04-24T05:30:46.000Z" locales: - [en](https://longbridge.com/en/topics/40161548.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40161548.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40161548.md) author: "[点金胜手](https://longbridge.com/en/profiles/12090136.md)" --- # AI is bullish! $SSE Index(000001.SH) $Shanghai Composite Index sh000001$ Domestic capital has been fleeing like crazy for two consecutive days. This morning alone, there was another net outflow of over seventy billion yuan. Moreover, Yizhongtian stocks directly collapsed collectively, and the entire optical communication sector has started to make up for losses and correct. This is big capital taking the opportunity to cash out at high levels and run with profits. If you keep refusing to admit that the main force is distributing, they will keep selling until you face reality. Many retail investors have a misconception: as long as the stock price keeps rising and the trend isn't broken, the main force won't leave. That's not the case at all. The crowded group-trading sectors are filled with institutional big money, and everyone's expectations are fundamentally different. When the market moves in waves, there are always institutions exiting at highs, and new institutions entering to take over. Some institutions have feasted on big gains, while many others end up holding the bag at highs. To put it bluntly, in the end, it's the fund investors and FOMO retail investors who get trapped at the peak. When Zhongji previously surged directly to a trillion market cap, and the whole internet was celebrating, New Epoch's Q1 earnings directly disappointed, pouring cold water on the market. Capital instantly sobered up, realizing the hype story couldn't be sustained anymore. Stock prices and valuations simply don't match the earnings, and a repricing is needed. So the broader market is definitely going to self-adjust next. Those high-flying tech stocks that rallied in groups will also need to digest the gains properly. The necessary correction won't be avoided, and overinflated valuations must return to normal. The short-term movement can be fully referenced to the CPO sector's performance after last October. It won't crash to the bottom all at once, but the adjustment period for most stocks will be prolonged. During the correction, there will be repeated ups and downs to lure people in, and ordinary retail investors simply can't time it right. Moreover, after this high-level consolidation and adjustment, even if new themes or concepts emerge and hit new highs later, it's highly likely not going to be the high-priced stocks you're holding. Once high-flying group-trading stocks show signs of a correction, don't gamble with wishful thinking. The most important thing right now is to control your position size, protect your profits, and don't let the gains slip away. Many people wonder why A-shares have reverted to their previous weak, volatile pattern. First, major indices have already been repaired to their previous levels, with the ChiNext even forced to a short-term new high. Global markets are also hitting new highs. At this level, the upward momentum has long been unsustainable, so it's normal for A-shares to lead the correction. Second, the market has become immune to the US-Iran situation, and A-shares have completely returned to their own rhythm. After a round of gains, indices naturally need to adjust. Quantitative funds are taking the opportunity to harvest, and profit-taking from earlier bottom-fishing is also concentrated. Third, it's almost the end of April. Listed companies are concentrating on disclosing annual and quarterly reports. Various earnings bombs are about to explode in clusters, which is a big blow to market sentiment. Today's sharp drop in New Epoch is the most direct example. Next week is the final deadline for earnings disclosures. The unavoidable earnings bombs can't be dodged. During this end-of-month period, the indices will likely oscillate and grind repeatedly. In the short term, we shouldn't be aggressive. Focus on defense first, wait for all earnings to be clear after the holiday, and then calmly look for buying-on-dips opportunities. Now, let's talk about sector directions: The current group-trading frenzy in computing hardware is starting to cool down and consolidate. The capital flowing out needs new places to go, and semiconductors are the most promising direction to absorb this overflow. Whether it's the sector's scale or the overall earnings fundamentals, it fits institutional capital's appetite perfectly. Historically, tech hype always starts with computing hardware before rotating to semiconductors. This pattern has never changed. Moreover, semiconductors have been fully adjusted earlier. In the morning session, sector leaders like SMIC and Huahong have already shown strength and moved. In the short term, we can focus on low-level opportunities in semiconductors. Also, big news from the AI side: OpenAI's strongest GPT-5.5 is officially launched, with token costs slashed to 1/35 of the original, and computing power output efficiency increased by 50 times. Our domestic DeepSeek-V4 preview version is also officially launched and open-sourced. In terms of intelligent agents, knowledge base, and logical reasoning, it directly ranks in the top tier of domestic open-source models. It's finally online after such a long wait. AI positive news keeps coming. In the morning session, AI application and domestic computing power sectors saw capital inflows and rallies. With continuous short-term catalysts, everyone should keep an eye on relatively low-priced, not-yet-surged targets within the sector and look for accumulation opportunities. ### Related Stocks - [300502.CN](https://longbridge.com/en/quote/300502.CN.md) - [000001.CN](https://longbridge.com/en/quote/000001.CN.md) - [SOXS.US](https://longbridge.com/en/quote/SOXS.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [CP00062.US](https://longbridge.com/en/quote/CP00062.US.md)