During early trading on June 10, CPO concept stocks experienced a collective decline, with the AI-focused ETF tracking the ChiNext board, which has over 50% exposure to optical modules, retreating more than 2%.
Leading the losses, Suzhou Tfc Optical Communication Co.,Ltd. (ASX: 300394) fell 8%, while Advanced Fiber Resources(Zhuhai),Ltd. (ASX: 300620) dropped over 7%. Zhongji Innolight Co.,Ltd. (ASX: 300308) and Eoptolink Technology Inc.,Ltd. (ASX: 300502) also declined by more than 1%.
Among popular ETFs, the leading ChiNext Artificial Intelligence ETF (159363), which ranks first in its category for size and liquidity, saw its on-market price fall over 2%, while recording real-time net subscriptions exceeding 300 million units.
On the news front, U.S. optical communication stocks suffered a sharp sell-off on Tuesday. By the close, AAOI was down 17%, POET fell 12%, Corning dropped over 7%, Coherent plunged over 11%, Lumentum declined over 8%, and Marvell Technology slid 7.6%. This movement followed a significant report from SemiAnalysis on June 9 regarding computing infrastructure, which expressed skepticism about the large-scale adoption of CPO technology and Nvidia's 800V high-voltage power supply architecture.
Focusing on Fundamentals
From a fundamental perspective, GF Securities suggests maintaining confidence in the optical communication investment theme. The current pullback presents an opportunity to focus on leading companies within the sector, and investors should fully utilize this window. For optical module manufacturers, priority should be given to top-tier players with strong supply chain capabilities, as they possess greater certainty and ability to deliver on earnings for this year and next, and are also poised to benefit first from scale-up optical interconnect scenarios.
On the supply side, leading optical module companies are diversifying their positions, and component shortages are expected to improve quarter by quarter. Manufacturers are developing next-generation optical interconnect technologies for scale-up scenarios, with new products being launched successively. On the demand side, recent corporate research indicates a significant increase in market capacity for pluggable optical modules, with demand outstripping supply, and a product transition from 800G towards 1.6T.
Accessing Optical Modules and AI Applications
To gain exposure to both optical modules and AI application opportunities, market participants are advised to consider the leading ChiNext Artificial Intelligence ETF (159363) and its corresponding feeder funds (Class A: 023407, Class C: 023408). The underlying index has a high concentration in optical modules, exceeding 50%, and allocates approximately 30% of its portfolio to AI applications, positioning it as a representative play not only in computing power but also in AI applications.
It is noteworthy that, as of June 5, 2026, the ChiNext Artificial Intelligence ETF (159363) reached a size of 7.507 billion yuan, ranking first in size within the dual-board AI theme across the market. Its average daily turnover over the past six months exceeded 800 million yuan, also leading the AI theme in terms of trading activity.
Data source: Shanghai and Shenzhen Stock Exchanges.
Investors should note that when subscribing for or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by the securities firm, and no sales service fee is levied.
For the feeder funds, Class C of the ChiNext Artificial Intelligence ETF Feeder Fund does not charge a subscription fee. A redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more. A sales service fee of 0.3% is charged. For Class A, the subscription fee is 1% for amounts below 1 million yuan, 0.6% for amounts between 1 million and 2 million yuan, and a flat 1000 yuan per transaction for amounts of 2 million yuan or above. The redemption fee structure is the same as for Class C, and no sales service fee is charged.
Risk Warning: The ChiNext Artificial Intelligence ETF (159363) passively tracks the ChiNext Artificial Intelligence Index. The index base date is December 28, 2018, and its release date is July 11, 2024. The index's annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The index's constituent stocks are adjusted per its compilation rules, and its back-tested historical performance is not indicative of future results. The mention of index constituents is for illustrative purposes only and does not constitute investment advice of any form, nor does it represent the holdings or trading intentions of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to the sales institution. Any information appearing herein is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to readers, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
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