Analysis of the Reasons for Fudan Microelectronics (688385) Strong Performance and Its Sustainability

Fudan Microelectronics (688385), as a domestic semiconductor company, its strong performance is mainly driven by a combination of industry environment and the company’s own factors. At the industry level, the global semiconductor demand, especially for AI memory, is recovering. Leading companies like Micron Technology reported better-than-expected earnings, driving the sector higher [1][2]. Meanwhile, domestic policies promoting semiconductor self-reliance and control continue to advance, boosting market expectations for domestic semiconductor companies [3]. From a technical perspective, on December 25, 2025, the stock rose 17.32% with a trading volume of 30.91 million shares, which is 2.8 times the average trading volume (about 11 million shares) of the previous five trading days, showing a breakout with heavy volume and strong buying interest [0].

Regarding market sentiment, the stock has risen by 103% since the beginning of this year, indicating that investors are optimistic about the AI and domestic semiconductor sectors. The sector linkage effect is significant; currently, the semiconductor sector as a whole is strengthening, and Fudan Microelectronics, as a member of it, benefits from industry resonance. In terms of technical indicators, the price broke through the previous consolidation range on that day. The initial upper resistance level is seen at 76.80 yuan (the day’s highest price), and after breaking through, it is expected to challenge 80 yuan; the lower support level is about 65 yuan (closing price of previous days) [0].

Risk factors include high valuation (PE ratio reaches 129.87x) [0], inherent cyclical volatility of the semiconductor industry, and the risk that policy implementation progress may fall short of expectations. Regarding opportunities, the continuous growth in demand for AI semiconductors and the acceleration of domestic substitution process provide market space for the company’s future development. It should be noted that the current stock price is already at a high level, and the risk of short-term fluctuations has increased.

Fudan Microelectronics’ strong performance is jointly driven by industry recovery, policy support, and technical breakout with heavy volume. Investors need to pay attention to changes in sector sentiment, the company’s fundamental performance, and industry cycle dynamics, and make decisions based on their own risk tolerance and investment goals.