ChiNext AI ETF Retreats Over 12% from Peak: Time to Buy or Wait?

On Friday (November 21), the ChiNext AI sector plunged nearly 5%, dragged down by a sharp correction in computing hardware like optical modules. By market close, Xinyisheng dropped over 8% to a new low since September, Tianfu Communication fell more than 7%, and Zhongji Innolight declined over 5%. In contrast, AI application stocks bucked the trend, with Yidian Tianxia surging 20% (daily limit), while Wanxing Technology, Chinese Online, and BlueFocus gained over 2%.

Among popular ETFs, the ChiNext AI ETF (159363)—with over 54% exposure to optical modules—closed down 4.83%, breaking below all short-term moving averages to hit a new low since its October peak. Daily turnover reached 920 million yuan, with net inflows of 176 million units as investors seized the dip.

For the week, the ChiNext AI sector rose initially before retreating, ending 1.18% lower and down over 12% from late October highs. Looking ahead, Nvidia’s stellar earnings reaffirm robust global computing demand, suggesting short-term volatility won’t derail the sector’s growth trajectory. A-share optical module leaders may spearhead a rebound in computing hardware. Additionally, Alibaba’s "Qianwen APP" launch could fuel catch-up opportunities in AI applications, making the ChiNext AI ETF a compelling watch.

【Computing Boom Intact: Optical Modules Poised to Lead】 Nvidia’s earnings underscore sustained global computing momentum. Analysts note that as demand surges, 1.6T optical module prices have risen in retail markets, while 800G and lower-speed modules are seeing slower price declines—a shift from the traditional "volume up, price down" trend to "volume and price rising together."

Volume-wise, market estimates project global 800G module shipments at 40 million units in 2026, with 1.6T modules exceeding 7 million. Price-wise, 1.6T modules initially retailed at $1,200 but now exceed $2,000, while 800G and below modules show stabilizing or rebounding prices.

As data center critical hardware, optical modules stand to benefit directly from AI-driven computing demand. A-share leaders, deeply integrated into global supply chains with technical edges, are well-positioned to rally the sector.

【Catalysts Galore: AI Applications Primed for Catch-Up】 Domestically, Alibaba’s "Qianwen" signals AI’s next phase—ecosystem integration—transitioning from scattered tool innovation to structural reshaping. Overseas, Google’s new multimodal AI model and Nano Banana updates accelerate commercial adoption, reinforcing sector trends.

Strategically, AI applications—lagging behind computing and storage plays—offer value with room for upside as industrial inflection points emerge, notes BOC Securities.

For exposure to optical modules and AI applications, consider the pioneering ChiNext AI ETF (159363) and its feeder funds (Class A: 023407; Class C: 023408). The underlying index heavily weights optical module leaders like Yizhongtian (54%+ allocation), with ~70% in computing and 20%+ in AI applications—efficiently capturing AI themes. (Data as of Oct 31, 2025)

Risk Disclosure: The ETF tracks the ChiNext AI Index (base date: Dec 28, 2018; launch: Jul 11, 2024). Past index performance (2020-2024: +20.1%, +17.57%, -34.52%, +47.83%, +38.44%) isn’t indicative of future results. Constituent stocks are for reference only, not investment advice or fund holdings. The fund is rated R4 (high risk) for aggressive investors (C4+). Investment decisions bear individual responsibility; no liability is assumed for direct/indirect losses from this content. Fund performance varies; past gains don’t guarantee future returns.