Eliza Wong
The Spectacular Thursday Rally: A Market Phenomenon
Thursday, September 11th, 2025, will be remembered as one of the most dramatic trading days in recent Chinese market history. The A-share market delivered an astonishing performance, with the创业板指 (ChiNext Index) and 科创50 (STAR 50 Index) both surging over 5% in a display of pure technological stock dominance. The Shanghai Composite gained 1.65%, while the Shenzhen Component Index jumped 3.36%, creating a wave of optimism that swept through trading floors across the nation.
What made this rally particularly remarkable was its breadth and intensity. An incredible 4,221 stocks advanced while only 1,047 declined—a decisive victory for bulls. The涨停板 (daily gain limit) was hit by 94 companies, showcasing the explosive buying pressure that characterized the session. This wasn’t just a modest uptick; it was a full-scale market transformation that left analysts scrambling to explain the sudden shift in sentiment.
The centerpiece of this explosive movement was undoubtedly the technology sector, where companies connected to artificial intelligence, computing hardware, and semiconductors experienced unprecedented demand. From established giants to emerging innovators, the entire ecosystem participated in what market commentators quickly dubbed ‘疯狂星期四’ or ‘Crazy Thursday.’
Market Performance Highlights
The numbers tell a compelling story of sector-wide enthusiasm. 工业富联 (Industrial Fu联) achieved something rarely seen in large-cap stocks—back-to-back daily limit gains, pushing the company to fresh all-time highs. The momentum wasn’t isolated to a single company either. Across the computing hardware space, companies specializing in optical modules, PCBs, and related components saw extraordinary buying interest.
胜宏科技 (Shenghong Technology), 中际旭创 (Zhongji Innolight), 新易盛 (Eoptolink), and 天孚通信 (TFC Optical Communication) all registered gains exceeding 10%, demonstrating the comprehensive nature of the rally. The semiconductor sector joined the party with equal vigor, with 海光信息 (Hygon Information), 新相微 (Newphase Micro), 炬光科技 (Focuslight Technology), and 赛微微电 (Saiwei Microelectronics) among those hitting the daily upper limit.
This synchronized surge across multiple technology subsectors pointed to a fundamental catalyst rather than technical factors or speculative momentum. The market wasn’t just chasing random technology names—it was responding to a specific development that promised to reshape the entire AI infrastructure landscape.
Oracle’s Stunning Revelation: The $455 Billion Catalyst
The earthquake that triggered Thursday’s market tsunami originated not in China, but in the United States. After Wednesday’s market close, Oracle Corporation (ORCL) delivered one of the most astonishing financial disclosures in recent corporate history. The database software giant revealed that it expected to recognize $455 billion in unrecognized contract revenue for the quarter ending August 31st—a figure representing more than four times the comparable period from the previous year.
This staggering number sent shockwaves through global markets, but its impact was particularly profound in China’s technology sector. Oracle’s CEO Safra Catz addressed analysts and investors with unprecedented optimism, explaining that the company had signed four major contracts with three customers during the quarter. More importantly, she indicated that several additional major contracts were expected in the coming months, potentially pushing Oracle’s contract revenue beyond the $500 billion threshold.
The scale of these commitments defied conventional analysis. For context, Oracle’s entire revenue for its 2024 fiscal year was approximately $53 billion. The new contracts alone represented nearly nine times that amount, signaling a fundamental transformation in how enterprises are approaching artificial intelligence infrastructure.
The OpenAI Partnership: Redefining Cloud Computing
While Oracle’s overall contract numbers were staggering, the specific revelation about its partnership with OpenAI provided the clearest explanation for market enthusiasm. According to informed sources, OpenAI committed to purchasing approximately $300 billion worth of computing power from Oracle over roughly five years. This single agreement stands as one of the largest cloud contracts in history, eclipsing previous landmark deals in both scale and strategic importance.
The OpenAI-Oracle partnership represents a profound shift in how AI companies approach infrastructure. Rather than relying exclusively on hyperscale cloud providers like Amazon Web Services, Microsoft Azure, or Google Cloud, leading AI innovators are seeking specialized partnerships that can deliver unprecedented computing capacity tailored to their specific needs.
This monumental commitment will require approximately 4.5 gigawatts of power capacity—enough electricity to power over two Hoover Dams or approximately 4 million households. The sheer physical infrastructure required to support this level of computing underscores the material reality behind the AI revolution that often gets lost in abstract discussions of algorithms and software.
Global AI Infrastructure Boom: Beyond Hype to Hardware
Oracle’s explosive contract revelation did more than boost its own stock—it validated the entire thesis behind AI infrastructure investment. For months, analysts had debated whether the massive spending on data centers, servers, and networking equipment represented sustainable demand or speculative excess. Oracle’s $455 billion answer suggests the former.
The implications extend far beyond Oracle’s balance sheet. This level of commitment signals that leading AI companies anticipate exponential growth in demand for their services, requiring computational resources on a scale previously unimaginable. It also suggests that current infrastructure is insufficient for the next generation of AI models, which will require even more processing power, faster networks, and more efficient cooling systems.
This validation comes at a critical moment for global technology markets. With concerns about potential AI bubbles growing louder, Oracle’s concrete contracts provide tangible evidence that behind the hype exists genuine, massive demand for the physical infrastructure that makes artificial intelligence possible.
China’s Position in the Global AI Supply Chain
The intense reaction in Chinese markets reflects the country’s crucial role in the global AI infrastructure ecosystem. While American companies like Oracle, NVIDIA, and AMD design critical components, Chinese manufacturers play an indispensable role in producing the hardware that powers AI systems worldwide.
Companies like 工业富联 (Industrial Fu联) manufacture servers and data center equipment for global clients. 中际旭创 (Zhongji Innolight) and 新易盛 (Eoptolink) produce optical modules essential for high-speed data transmission within and between data centers. 胜宏科技 (Shenghong Technology) manufactures printed circuit boards that form the foundation of computing hardware. The semiconductor companies that surged on Thursday produce chips essential for various aspects of AI processing.
This interconnected global supply chain means that demand surges anywhere create ripple effects everywhere. Oracle’s massive contracts with OpenAI and other clients will inevitably translate into increased orders for Chinese manufacturers, justifying the market’s enthusiastic response.
Sector-by-Sector Impact Analysis
The ‘Crazy Thursday’ rally wasn’t uniform across all technology subsectors. Different segments experienced varying degrees of impact based on their specific exposure to the AI infrastructure theme. Understanding these nuances provides crucial insight for investors seeking to position themselves for continued momentum.
Computing hardware companies experienced the most direct benefit from Oracle’s news. The need for massive data center expansion requires servers, storage systems, networking equipment, and power infrastructure. Companies positioned in these spaces saw immediate buying interest as investors recalibrated growth expectations.
Semiconductor companies benefited from both the direct need for processing chips and the broader optimism about technology demand. AI requires specialized processors for training and inference, creating sustained demand for advanced semiconductors. The rally in names like 海光信息 (Hygon Information) and 赛微微电 (Saiwei Microelectronics) reflected this dual catalyst.
Networking and connectivity specialists surged on the recognition that moving massive amounts of data between and within data centers requires advanced optical communication technology. The exceptional performance of 中际旭创 (Zhongji Innolight) and 天孚通信 (TFC Optical Communication) underscored how critical data transmission has become in the AI infrastructure stack.
Long-Term Implications Beyond Immediate Gains
While Thursday’s dramatic price movements captured attention, the more significant story may be the long-term implications for these companies. Oracle’s contracts suggest a multi-year investment cycle in AI infrastructure that could sustain elevated demand for Chinese technology manufacturers.
The scale of commitment also indicates that current AI capabilities represent just the beginning of what’s possible. The computational requirements for next-generation AI models likely exceed what today’s infrastructure can provide, necessitating continued investment in more powerful and efficient systems.
This creates a virtuous cycle where advancements in AI capabilities drive demand for better infrastructure, which in turn enables further AI advancements. Companies positioned in this ecosystem may experience sustained growth rather than a temporary spike based on short-term enthusiasm.
Investment Strategies in the Wake of Oracle’s Revelation
For investors, the challenge now is determining how to respond to this validated AI infrastructure thesis. The dramatic price moves on Thursday created both opportunities and risks, requiring careful analysis rather than impulsive action.
First, distinguish between companies with genuine exposure to the global AI infrastructure buildout and those simply riding the wave of sector enthusiasm. Companies with established relationships with global cloud providers, proven technology, and scalable manufacturing capacity offer more sustainable investment propositions than speculative names with limited actual connection to the theme.
Second, consider the valuation implications of Thursday’s moves. While the fundamental outlook may have improved, excessive price appreciation can create near-term vulnerability. Investors might consider staggered entry approaches or focus on companies that haven’t yet fully priced in the improved outlook.
Third, look beyond immediate hardware plays to companies that enable AI infrastructure through software, services, and specialized components. The entire ecosystem stands to benefit from increased AI adoption, creating opportunities beyond the most obvious beneficiaries.
Risks and Considerations
Despite the compelling narrative, investors must remain cognizant of several risks. The scale of AI infrastructure investment creates potential for overcapacity if demand doesn’t materialize as expected. Geopolitical tensions could disrupt global supply chains, affecting Chinese companies’ access to international markets.
Valuation levels after Thursday’s surge require careful assessment. While fundamentals may have improved, prices that advance too far too quickly can create vulnerability to disappointing news or broader market weakness.
Finally, the competitive landscape remains intense. While Oracle’s contracts validate overall demand, the specific beneficiaries may shift as technology evolves and new players emerge with superior solutions.
The Future of AI Infrastructure: What Comes Next
Oracle’s landmark contracts likely represent just the beginning of a broader transformation in how computing resources are deployed for artificial intelligence. Several trends suggest that what we witnessed on Thursday may be a preview of larger changes to come.
First, the specialization of AI infrastructure will likely accelerate. General-purpose cloud computing platforms will increasingly be supplemented by specialized providers optimized for specific AI workloads. This creates opportunities for companies that can deliver superior performance for training large language models, inference, or specialized AI applications.
Second, energy efficiency will become increasingly critical. The massive power requirements revealed by Oracle’s contracts—4.5 gigawatts for the OpenAI deal alone—will drive innovation in cooling technologies, power management, and potentially even location decisions for future data centers.
Third, the geographic distribution of AI computing may evolve. While current infrastructure concentrates in certain regions, the scale of future requirements may drive expansion into new locations with favorable power costs, cooling opportunities, or regulatory environments.
Navigating the New AI Landscape
Thursday’s remarkable market activity provided more than just trading opportunities—it offered validation of the AI infrastructure thesis that has been building for months. Oracle’s staggering $455 billion in contracts, particularly its $300 billion commitment from OpenAI, demonstrates that the artificial intelligence revolution is built on physical infrastructure requiring massive investment.
For Chinese technology companies, this represents both validation and opportunity. Manufacturers of servers, networking equipment, semiconductors, and components find themselves at the center of a global transformation that shows no signs of slowing. While short-term price movements may exhibit volatility, the fundamental direction appears clearly established.
Investors should approach this landscape with both optimism and discernment. The companies that will thrive are those with genuine technological advantages, scalable manufacturing capabilities, and strategic relationships with global leaders in AI development. As the infrastructure buildout continues, opportunities will emerge beyond the immediate hardware plays into software, services, and specialized solutions.
The age of artificial intelligence requires literal concrete and steel—data centers, servers, networking gear, and semiconductors—not just algorithms and code. Thursday’s market surge recognized this reality, and the companies that provide these essential components may well define the next chapter of technological progress.
