Yesterday it fell a little hard, and some friends said that they thought that there would be fluctuations, but they didn't expect it to hurt so much. Having said that, it has been rising for two months, and the upper part is still facing the pressure of a triple top, so it makes sense to adjust it. Let's not talk about the market today, let's talk about the fundamentals from the perspective of capital.

In the early morning of February 27, Beijing time, NVIDIA, the leader of the seven giants of the US stock market, released its fourth-quarter financial report, and the data performance and information revealed were very good, but there was not much attention and discussion in the domestic capital public opinion field. Considering the practical needs of public opinion guidance, Lichangjun can understand it very well, but you might as well take your friends to briefly review the specific situation first.

First of all, Nvidia's earnings report showed that the company achieved revenue of $39.33 billion in the fourth quarter, an increase of 78% year-on-year, which exceeded analysts' expectations of $38.05 billion, and adjusted earnings per share of $0.89, also higher than analysts' expectations of $0.84. This is largely due to the surge in demand for Nvidia's data center graphics processing units (GPUs), which account for the vast majority of the AI accelerator market.

Looking at the later guidance, Nvidia expects first-quarter revenue to reach about $43 billion, with a fluctuation of plus or minus 2%, which is an increase of about 65% from the same period last year, and the figure is higher than the analysts' expectations of $41.78 billion.

Third, looking at innovation breakthroughs, Nvidia's current focus is on the rapid launch of its next-generation AI processor, Blackwell, which reached $11 billion in sales in the fourth quarter, to which CEO Jensen Huang said that demand for Blackwell is "very strong" and called it the fastest product sales growth in the company's history.

Fourth, looking at shareholder returns, Nvidia said that it invested $33.7 billion in fiscal 2025 to buy back the company's shares, demonstrating the company's confidence in future performance growth.

The core information is these, the key is what kind of inspiration can be given to the current market is fermenting A-share technology stocks in full swing?

It must be admitted that in the context of increasingly fierce global technology competition, China's leading technology companies are rising, showing a strong momentum of development, and there is no lack of Chinese technology stocks in the market.

Nvidia is one of the seven giants of technology in the United States, including Apple, Microsoft, Google, Amazon, Meta, Tesla and Nvidia. China's capital market also has its own seven giants, according to the analysis of Huatai Securities and other institutions, Tencent, Alibaba, Xiaomi, Meituan, BYD, SMIC, Lenovo and other companies are considered to be the core strength of China's technology field, in artificial intelligence, semiconductors, cloud computing, intelligent hardware and other fields have made significant progress, showing strong competitiveness.

Moreover, since 2025, China's tech giants have been significantly stronger; On the contrary, most of the stock prices of the seven major U.S. technology companies performed mere or even fell, and Meta and Nvidia performed well, but it can also be seen that the overall growth momentum is insufficient.

But as Warren Buffett said, the stock price is a voting machine in the short term and a weighing machine in the long term. In this forcefield, only SMIC (688981. SH) as an example, make a comparison with NVIDIA's performance exceeding expectations, because these two companies are the existence of the white jade pillar of semiconductor and artificial intelligence infrastructure in their respective countries.

In terms of performance data: NVIDIA's annual revenue was +114.20% year-on-year and net profit was +144.89% year-on-year, according to data previously released by SMIC, revenue in 2024 was +27.02% year-on-year, net profit was -45.4%, and net profit after deducting non-profit fell by 98.09% and was on the verge of loss.

In terms of shareholder returns: NVIDIA invested $33.7 billion in repurchasing the company's shares, and SMIC has not made any cash dividends or share buybacks since its listing.

In terms of expected judgment: Nvidia's actual revenue will be about $2 billion higher than expected from July 2023; For example, in the research report released by China Post Securities in November last year, it is expected that the company's revenue in 2024 will reach 56.3 billion yuan and net profit will reach 4.4 billion yuan, but in fact, the two data are 57.8 billion yuan and 3.7 billion yuan respectively, with revenue exceeding expectations and profits significantly falling short of expectations.

In comparison, three conclusions can be drawn: SMIC's performance growth has yet to be explored, and it has not yet entered the stage of being able to give back to shareholders; At the same time, Nvidia always gave a small surprise to the market, and SMIC gave a small regret.

The performance of international capital is also quite intriguing. Recently, Lichangjun has also read a lot of reports, international investment banks have been bullish on Chinese assets, and at the same time, there are differences in the later views of the seven US technology giants. But on the other hand, according to the 13F report released by the SEC, Fidelity, Northern Trust, JPMorgan Chase, Wells Fargo, Franklin Resources and other large institutions have Microsoft, Apple, Nvidia, Amazon, Google and other stocks as key positions.

According to a previous research report by CICC, from January 30 to February 5, active foreign capital continued to flow out of China by US$290 million, of which the outflow of A-shares narrowed to US$60 million, accelerating the outflow of US$230 million from overseas Chinese stocks. In this regard, CICC believes that the main force of current capital inflow may not be long-term active foreign capital, but mainly trading and passive funds.

It should be noted that Lichangjun is not bearish on Chinese technology stocks, and Lichangjun is also looking forward to the market of Chinese technology stocks, which can be carried out on a year-by-year basis, and the narrative of China's asset revaluation has just begun.

From the perspective of fundamentals alone, China's leading technology companies still need to improve and make up for their shortcomings in terms of their own profitability shaping and shareholder returns. After all, the transformation from financing as the core function to investment as the core function should not only depend on how the words are sung, but also how to walk the road under your feet.