On Tuesday (November 4), the A-share market adjusted with lower trading volume, and the AI sector saw a broad pullback. The ChiNext AI Index retreated after an early rally, closing down 0.89%, demonstrating relative resilience compared to other AI indices. In the computing power segment, optical modules showed clear signs of stabilizing after recent high volatility, with Eoptolink (300502) rising against the downtrend, while Zhongji Innolight and TFC Optical Communication dipped slightly by 0.46% and 0.72%, respectively. AI applications saw selective activity, with BlueFocus Communication leading gains at over 3%, followed by Mango Excellent Media and Hope Software.
Among popular ETFs, the largest ChiNext AI ETF (159363) by scale fluctuated before closing down 0.91% with a trading volume of 581 million yuan. Recent inflows remained strong, with a single-day net subscription of 14 million units and cumulative net inflows exceeding 250 million yuan over the past five days—the highest among peers.
Key market insights suggest sustained high demand for computing power hardware like optical modules, potentially reigniting the ChiNext AI sector’s upward momentum, which explains recent capital inflows:
1. **Industry Developments**: The computing power sector saw another breakthrough. Ahead of Monday’s U.S. market open, Amazon Web Services (AWS) and OpenAI signed a historic $38 billion (approximately 270 billion yuan) computing power agreement—the first such collaboration between a cloud computing leader and an AI giant. Amazon’s stock rose 4% to a record high, while Nvidia gained over 2%.
2. **Capital Expenditure**: North America’s top four cloud providers (Microsoft, Amazon, Meta, and Google, collectively MAMG) reported a 68% YoY surge in Q3 2025 capex to $96.4 billion. FactSet projects full-year 2025 capex to reach $363.3 billion, up 63% YoY.
3. **Fundamentals**: Short-term earnings volatility does not alter the long-term bullish outlook for computing power hardware. First Shanghai advises focusing on core metrics like computing power CAPEX, token consumption, and ARR rather than transient fluctuations. While market sentiment may be swayed by sector rotation or crowding, the structural growth in computing power remains intact. Optical communication leaders, backed by innovation and next-gen R&D, are poised to dominate the AI era.
CITIC Securities notes that Q3 reports from North America’s top cloud service providers (CSPs) reflect accelerating capex growth, with continued optimism about infrastructure investments. Recent volatility in AI computing power stocks, including optical modules, does not signal the end of the industry cycle. Mid-term, the AI sector—particularly core computing power players—warrants close attention.
To capture opportunities in optical modules and computing power, investors may consider the pioneering ChiNext AI ETF (159363) and its feeder funds (Class A: 023407; Class C: 023408). The underlying index allocates over 54% to optical module leaders like Eoptolink, Zhongji Innolight, and TFC Optical Communication ("YiZhongTian"), with 70%+ exposure to computing power and 20%+ to AI applications, efficiently tracking AI themes. (Data as of October 31, 2025.)
Among peers, ChiNext AI ETF (159363) leads with a scale exceeding 3.5 billion yuan and an average daily turnover of 700 million yuan over the past month—topping the seven ETFs tracking the ChiNext AI Index as of October 31.
*Source: SSE, SZSE. Note: "Pioneering" refers to the first ETF tracking the ChiNext AI Index.*
*Risk Disclosure: The ChiNext AI ETF passively tracks the ChiNext AI Index (base date: December 28, 2018; launch date: July 11, 2024). The index’s annual returns for 2020–2024 were 20.1%, 17.57%, -34.52%, 47.83%, and 38.44%, respectively. Constituents are adjusted per index rules; past performance does not indicate future results. Stock mentions are illustrative and not investment advice or indicative of fund holdings. The fund is rated R4 (higher risk) for aggressive (C4+) investors per distributor assessments. All views expressed are for reference only, and investors assume full responsibility for independent decisions. Performance history does not guarantee future returns. Invest with caution.*
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