Shares of the Huabao Shanghai Science and Technology Innovation Board Artificial Intelligence Trading Open Ended Index Sec ETF (589520), which focuses on China's domestic AI supply chain, surged intraday before paring gains on Monday, June 3rd. The fund's on-market price rose over 4.5% at its peak and was last up 1.31%, aiming for a second consecutive day of gains.
Among its constituent stocks, Tianzhun Technology led the advance with a gain of over 12%. Orbbec, Inc. rose more than 6%, Montage Technology climbed over 5%, and Cambricon Technologies increased by more than 4%. Stocks like Insta360, Espressif Systems, and VeriSilicon Microelectronics also followed the upward trend.
Key Catalysts and Market Drivers
The backdrop for the AI sector's activity is the ongoing Computex conference from June 2nd to 5th, where AI has once again emerged as the central theme. Two primary factors are supporting the current investment window for the AI segment. Firstly, the detailed rollout of NVIDIA's full-stack AI roadmap provides a clear expansion path for the AI hardware chain. Secondly, a new product cycle for AI PCs and edge AI devices is commencing, accelerating the closure of application scenarios.
From Concept to Implementation: The AI Factory Roadmap
A key development at this year's Computex is NVIDIA's translation of the "AI factory" concept into a tangible, quantifiable full-stack hardware roadmap. On the device side, initiatives like RTX Spark, N1X, and deep collaboration with Microsoft in the PC domain are extending AI Agent capabilities from cloud training to edge inference and local execution, opening new expansion avenues for the hardware ecosystem. This comprehensive "data center to edge" blueprint provides a complete investment mapping logic for the A-share AI hardware chain—from upstream chips to midstream modules and terminal applications—significantly boosting investor interest in related sectors.
AI PCs Enter the Supply Cycle, Edge AI as a New Growth Engine
Another major highlight of the conference is the PC collaboration between NVIDIA and Microsoft. The integration of Microsoft's Copilot+ PC ecosystem with NVIDIA's RTX AI computing platform is propelling AI PCs from the proof-of-concept stage into a cycle of new product preparation and application adaptation by brand manufacturers. According to IDC data, global AI PC shipments are expected to exceed 100 million units by 2026, with penetration rates rapidly increasing from around 14% in 2025 to over 30%. This growth is set to drive volume expansion in related supply chains for components like NPUs, high-bandwidth memory, and thermal modules. The accelerating penetration of edge AI not only brings incremental opportunities for the consumer electronics supply chain but also broadens the AI investment theme from the cloud to end devices.
Investment Strategy and Sector Focus
Analysis suggests the focus of AI investment is gradually shifting from foundational infrastructure like computing power and large language models to the implementation of intelligent solutions across various industries. The widespread adoption of intelligent agents (Agents) may represent a significant inflection point for the sector, advocating for a balanced allocation strategy that encompasses both computing hardware and industry applications.
A Focus on Domestic AI Innovation
The Huabao Shanghai Science and Technology Innovation Board Artificial Intelligence Trading Open Ended Index Sec ETF (589520) and its feeder funds concentrate on China's domestic AI industry chain. Its portfolio includes leading domestic GPU developers (e.g., Cambricon Technologies), leading domestic ASIC providers (e.g., VeriSilicon Microelectronics), and top AI application firms (e.g., Kingsoft Office). Semiconductor-related stocks account for nearly half of the portfolio weight, offering strong growth potential, while software stocks comprise over 30%, positioning the fund to potentially benefit from a catch-up rally in AI applications. The ETF is also a margin trading and securities lending instrument, serving as an efficient tool for gaining exposure to domestic computing power.
Important Risk Considerations
The Huabao Shanghai Science and Technology Innovation Board Artificial Intelligence Trading Open Ended Index Sec ETF passively tracks the SSE Science and Technology Innovation Board Artificial Intelligence Index. The index's base date is December 30, 2022, and it was launched on July 25, 2024. Its constituent stocks are adjusted according to the index methodology, and its back-tested historical performance is not indicative of future results. Individual stocks and index constituents mentioned are for illustrative purposes only; their description does not constitute investment advice of any form nor does it represent the holdings or trading intentions of any fund managed by the asset manager. The fund manager assesses the risk rating of this ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and higher risk-tolerance investors. Suitability assessments should be confirmed with the selling institution. Any information appearing in this context is for reference only, and investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts do not constitute investment advice to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. A fund's past performance is not indicative of its future results. The performance of other funds managed by the same manager does not guarantee this fund's performance. Investors should exercise caution.
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