The index has returned to 4100 points, disappointing those waiting to buy the dip at 3500. However, if you are not positioned in the light, if you are not going long on Suzhou, you will only see the index rise without making any real profits.
Some commentators have expressed amazement at the high tolerance of A-share capital for AI stocks. A leading liquid cooling company with poor earnings saw its price recover after just two跌停s. In contrast, a solar energy firm, also associated with 'light', saw its stock plummet from 209 to 121 due to weak fourth-quarter results. Simply because it belongs to the new energy sector, its performance couldn't even match that of lesser AI stocks.
Many expected the debate over optical chips on Tuesday evening (April 21st) to have an impact. Yet, by yesterday (April 22nd), the optical chip stocks involved in that debate had either hit their daily limit-up or reached new highs, entering another frenzied state. There's even a joke circulating that Korean retail investors, known for their high-risk appetite, are now buying AI stocks in Hong Kong.
The light field is震撼ing Asia!
While new energy is seen by many as the second main theme after AI, its performance has been lackluster. As AI stocks rebound from sell-offs, sodium battery stocks collectively declined following an industry conference. The allure of new battery technologies might tempt investors, but getting too close can be dangerous—one more look and it might explode.
Consider a friend who holds a tin-related stock. The price of tin hasn't risen significantly, yet the stock price keeps climbing. The reason? The company also produces indium, a key upstream material for optical chips. Have you heard the story of optical indium?
An inch of optical indium is worth an inch of gold, but an inch of gold can't buy an inch of optical indium.
Once you miss the rally in these light-related stocks, it's hard to chase them—their ascent is too rapid, truly like an arrow shot from a bow.
During trading, a leading optical component supplier surpassed a market cap of 600 billion, prompting shareholders to create celebratory posters. Another major player is approaching a trillion-yuan valuation, with congratulatory messages prepared in advance. No one dares call this a premature celebration; the AI festival seems imminent.
Choice is greater than effort. Stand in the light, don't just stand there. Store all the beauty, and your heart won't grow cold. Even if you don't live in Suzhou, your assets can be there. If you don't own property in Suzhou, you can buy Suzhou stocks. Suzhou is the state of light.
The ChiNext Artificial Intelligence ETF (159363) surged 5% yesterday (April 22nd), with monthly gains approaching 30%. This is the result of standing in the light. Its holdings in a major AI firm exceed 40%, maximizing its exposure to the 'light' theme. The ETF also holds several leading optical chip companies and a top compute power leasing stock, which惊艳ed the market with a 20% gain yesterday.
While some investors might not fully distinguish between CPO and optical modules, it doesn't prevent them from basking in the sunshine of this slow bull market. Most of the time, stocks within the same sector in the A-share market move together. The core strategy is to pick the right direction and maintain a full position. Investing in ETFs has proven to deliver considerable returns.
As for points of caution, it's the often-discussed issue of crowding. Keep an eye on the red line where a sector's trading volume accounts for 20% of the total market. Before reaching that point: Hold onto your CPO stocks as if you were the CEO.
A MACD golden cross signal has formed, and these stocks are performing well.
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