Understanding the Market | PCB Concept Stocks Lead in Gains as Google Continues to Raise Capital Expenditure Guidance, PCB Industry Chain Tightens Overall
Driven by Google's increase in capital expenditure guidance and demand for AI computing power, PCB concept stocks have seen significant gains. Guolian Minsheng Securities pointed out that the shortage of upstream materials is driving a price increase cycle, with electronic fabrics having accumulated a 100% increase, and the leading copper-clad laminate company raising prices for the sixth time this year
According to the Zhitong Finance APP, PCB concept stocks are leading in gains. As of the time of writing, Jiantao Laminated Board (01888) is up 4.92%, trading at HKD 42.24; Shenghong Technology (02476) is up 4.23%, trading at HKD 236.4; China National Building Material (03323) is up 1.91%, trading at HKD 3.73; Jiantao Group (00148) is up 1.56%, trading at HKD 52.
In terms of news, Google's parent company Alphabet released its Q2 financial report, with revenue increasing by 24% year-on-year to USD 119.8 billion, and Google Cloud revenue soaring by 82% to USD 24.8 billion. Notably, in the second quarter, Alphabet's capital expenditure doubled year-on-year to USD 44.9 billion, while free cash flow fell to negative USD 5.9 billion; Alphabet raised its full-year capital expenditure guidance to USD 195 billion - USD 205 billion and expects spending to continue to grow significantly in 2027.
Guolian Minsheng Securities pointed out that the rising demand for AI computing power infrastructure is driving a tightening across the upstream materials, MLCC, and optical communication industry chains, initiating a price increase cycle. In the PCB sector, upstream materials such as resin, electronic fabric, and copper foil are experiencing structural shortages due to cautious overseas expansion, the transition of high-end products, and the shutdown of factories in Saudi Arabia. As of June 2026, electronic fabric has completed five rounds of price increases, with a cumulative increase of 100%. Digitimes cites market news that the copper foil gap for HVLP4 is expected to reach 1,500 tons by 2026, prompting the leading copper-clad laminate manufacturers to raise prices for the sixth time this year
