Practical Guide: Trading Plan for August 21, 2026

I. Summary of Market News Alibaba Data Centers: Alibaba’s Q2 Capital Expenditure (CapEx) Surges Significantly—Up 75% Year-on-Year and 151% Quarter-on-Quarter Alibaba disclosed its financial results, reporting RMB 67.678 billion in capital expenditures for Q1 FY2027—an increase of 75% year-on-year and 151% quarter-on-quarter. CEO Eddie Wu stated that the company has already invested RMB 190 billion in AI infrastructure, with CapEx expected to recoup costs within three years. • Q1 FY2027 CapEx: RMB 67.678 billion • Q1 FY2026 CapEx: RMB 38.676 billion • Q4 FY2026 CapEx: RMB 26.887 billion CPO (Co-Packaged Optics): SK Hynix Unveils Next-Generation CPO Roadmap—Extending Optical Interconnects to Memory Interfaces In a review paper titled “Co-Packaged Optics for High-Performance Computing and Artificial Intelligence,” published in Nature Electronics, SK Hynix—collaborating with researchers from the University of Virginia, MIT, and Nanyang Technological University—outlines a long-term roadmap advancing optical interconnects all the way to memory interfaces. Currently, CPO is primarily used for high-speed inter-chip interconnects. In conventional architectures, data must first be transmitted via electrical signals from the chip to optical modules located at the device edge, then converted into optical signals for transmission. By contrast, CPO integrates optical components directly adjacent to the chip, minimizing the distance over which high-speed electrical signals travel—thus reducing power consumption and increasing bandwidth. SK Hynix’s next step is to push this optical pathway even further inward. II. U.S. Equities Overnight Last night, all three major U.S. indices closed lower: the Dow Jones fell 1.32%, the Nasdaq dropped 1.0%, and large-cap tech stocks posted mixed performance. The Philadelphia Semiconductor Index rose 0.53%; NVIDIA declined 0.33%; Oracle fell over 1%; Tesla and Apple each dropped nearly 2%; Google fell over 1%; Intel declined 0.72%; Broadcom rose 0.43%; SanDisk surged over 2%; SK Hynix jumped over 4%; Seagate rose over 2%; Western Digital gained over 1%; Micron rose nearly 4%; SpaceX fell over 4%; and biotech giant Moderna plunged 23%. This suggests today’s pharmaceutical sector may face divergence and consolidation, while tech stocks could see partial capital inflows. III. Today’s Strategy Yesterday’s market rallied early but reversed later in the session. Although all three major indices closed in positive territory by the end of trading, the overall rebound lacked strength and delivered only modest profit opportunities. The Shanghai Composite remained above both its 20-day and 30-day moving averages, whereas the ChiNext and STAR Market indices remained comparatively weak—constrained by resistance from their respective 20-day and 30-day moving averages. In the near term, if the index fails to decisively reclaim the 20-day moving average, further downward adjustment remains possible. Yesterday’s total market turnover declined by over RMB 400 billion compared to the previous trading day, settling just above RMB 2 trillion—indicating strong investor caution and a predominantly range-bound, zero-sum market environment. Sector-wise, pharmaceuticals and biotechnology surged across the board yesterday, while gold-related assets and real estate also performed robustly. Conversely, the broader tech sector experienced pronounced divergence: CPO saw localized recovery, while semiconductor equipment stocks posted the largest losses. Overall, market risk appetite remains unrecovered; the market is still consolidating near its lows. With limited liquidity, traditional defensive sectors—such as those favored by older investors—have relatively stronger performance, yet operational difficulty remains high. Hence, a cautious stance—“observe more, act less”—is advisable.

20260729: Bottom Approaching

SK Hynix’s Q2 2026 earnings, as forecasted by KS, missed expectations—triggering its steepest-ever plunge, briefly falling 18%. The KOSPI index, having touched its lowest level since the U.S.–Iran war, began a rapid rebound. Hynix’s earnings miss stemmed from DRAM ASPs falling short of expectations. Production capacity was increasingly allocated toward HBM instead. Following the earnings release, its forward P/E ratio dropped to around 3. What, then, is the market pricing in right now? It appears to be pricing in an imminent collapse of mega-cap CapEx—halting infrastructure investment within two years, a 50% decline in NVIDIA’s share price, and bankruptcy risks for memory and most semiconductor companies. Is this pricing rational? I’m skeptical. The prevailing narrative holds that AI generates revenue only through coding applications—and therefore cannot justify such massive CapEx. Yet one critical concept must not be overlooked: technological explosion. Just one year ago, we couldn’t have imagined AI completing large-scale software engineering projects via autonomous agents. Back then, I still had to clumsily copy entire code snippets into web-based chat windows and laboriously describe context just to debug.

Balchem Reports Q2 2026: Revenue $284.0M, Net Earnings $44.6M, Adjusted EPS $1.49

Jul 31, 2026

Balchem Corporation reported record Q2 fiscal 2026 financial results, with net sales increasing 11.2% year-over-year to $284.0 million. The company posted GAAP net earnings of $44.6 million and generated $36.2 million in free cash flow.

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2026-07-17

Balchem Corporation to announce Q2FY26 results on July 31

2026-07-23

Balchem Earnings Up Next: Can Specialty Ingredients Sustain Growth?

2026-07-27

Balchem (BCPC) Q2 2026 Preview: EPS Est. $1.43, Reports July 31

2026-07-31

Balchem Corporation Posts Q2 Adjusted EPS of $1.49, Surpassing Estimates

2026-07-31

Balchem Corporation Reports Second Quarter 2026 Financial Results