The market landscape shifted dramatically during the afternoon session on June 5th, with popular sectors experiencing a collective pullback. The CPO (Co-packaged optics) optical module segment led the decline, with Zhongji Innolight Co.,Ltd. (SZSE: 300308) shares tumbling over 8%. Shares of Xinyisheng and Tianfu Communication also fell more than 4%. Among popular ETFs, the ChiNext Artificial Intelligence ETF Huabao (159363), which has over 50% exposure to optical modules/CPO and high holdings in key stocks, dropped 3.5% intraday with turnover exceeding 1.6 billion yuan, while net subscriptions of 50 million units were recorded.
Analysts Maintain Long-Term Thesis
Guosheng Securities stated that the long-term evolutionary logic for the computing power sector remains intact. As we move into June, demand expectations for optical modules in 2027 are becoming clearer, and the supply constraints for key upstream components that previously hampered deliveries are gradually reaching an inflection point towards improvement. Leading optical module manufacturers are poised to accelerate the release of their production capacity and earnings potential. The firm recommends refocusing on the optical module sector and paying attention to its leaders.
Technological Progress
On the technology front, Nvidia's Spectrum-X Ethernet silicon photonics technology has entered full-scale production. The new Spectrum-X switch adopts a CPO architecture, supporting the deployment of Nvidia's Vera Rubin platform for horizontal scaling and cross-regional AI factory setups within data centers. Kaiyuan Securities believes the accelerated commercialization of CPO and Marvell's comprehensive product portfolio form a mutually reinforcing dynamic, potentially catalyzing core investment opportunities within the CPO industry.
Demand Outlook
From a demand perspective, Goldman Sachs estimates that by 2030, the combined capital expenditures of tech giants Meta, Microsoft, Amazon, and Alphabet will reach $5.3 trillion. This massive investment is expected to first translate into robust demand for AI computing infrastructure. As a core component for connecting GPU clusters and enabling high-speed data transmission within data centers, optical modules stand to benefit significantly.
Index Performance
Catalyzed by the strong performance of overseas computing power chains like optical modules/CPO, the ChiNext Artificial Intelligence Index continues to lead among comparable AI-themed indices. As of June 3rd, the underlying index of the high-exposure ChiNext Artificial Intelligence ETF Huabao (159363) has surged over 224% in the past year, significantly outperforming other broad-market AI-themed indices. Regarding valuation, Industrial Securities notes that from PE-to-Growth and PS-to-Net Profit Margin perspectives, leading Chinese companies in the North American computing power chain, such as optical module makers, remain relatively cheaper compared to their overseas peers.
ETF Details
Note: The ChiNext Artificial Intelligence ETF Huabao passively tracks the ChiNext Artificial Intelligence Index. The index's base date is December 28, 2018, and its release date is July 11, 2024. Its annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. Index constituent stocks are adjusted per its compilation rules, and its past performance does not guarantee future results.
To gain exposure to opportunities in both optical modules and AI applications, investors may consider focusing on the ChiNext Artificial Intelligence ETF Huabao (159363) and its feeder funds (Class A: 023407, Class C: 023408), which lead their category in size and liquidity. The underlying index currently has over 50% exposure to optical modules, high holdings in key stocks, and allocates roughly 30% to AI applications, representing not just computing power but also AI application plays.
Market Position
It is noteworthy that as of June 2, 2026, the ChiNext Artificial Intelligence ETF Huabao (159363) reached a size of 7.436 billion yuan, ranking first in size within the dual-innovation AI segment of the market. Its average daily turnover over the past six months exceeded 800 million yuan, also ranking first in trading activity within the AI segment.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
*Analyst views referenced from: Guosheng Securities report "Navigating Volatility, Chasing the Light"; Industrial Securities report "What indicators led us to suggest refocusing on 'Optical' on May 26?"
ETF Fee Information
For ETF subscriptions or redemptions, subscription/redemption agents may charge a commission of up to 0.5%. Intraday trading fees are subject to the rates charged by the securities firm, with no sales service fee.
Feeder Fund Fee Information
The ChiNext AI ETF Feeder Fund Class C charges no subscription fee. The redemption fee is 1.5% within 7 days and 0% for 7 days or more. A sales service fee of 0.3% applies. The ChiNext AI ETF Feeder Fund Class A has a subscription fee of 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and 1,000 yuan per transaction for 2 million yuan or above. The redemption fee is 1.5% within 7 days and 0% for 7 days or more. No sales service fee is charged.
Risk Disclosure
The ChiNext Artificial Intelligence ETF Huabao passively tracks the ChiNext Artificial Intelligence Index. The index's base date is December 28, 2018, and its release date is July 11, 2024. Its annual performance from 2021 to 2025 was 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. Index constituent stocks are adjusted per its compilation rules, and its past performance does not guarantee future results. Index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading intentions of any fund managed by the asset manager. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) or higher risk profile investors. Suitability matching opinions are subject to the sales institution. Any information appearing herein (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future returns. 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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