Domestic AI Stocks Surge Following Google Developer Conference Kickoff

This afternoon (May 19th), the domestic AI industry chain saw a collective upward move. Verisilicon Microelectronics(Shanghai)Co.,Ltd. surged over 10% (as of writing, it attracted over 1.7 billion yuan in net main fund inflows, ranking second on the A-share capital attraction list). AMLogic rose more than 8%, and Cambricon Technologies Corporation Limited gained over 2%. Among popular ETFs, the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520) fluctuated higher, with its on-market price currently up 1.9%. Notably, this ETF rose 2.5% against the market trend yesterday, with its closing gain placing it in the top 10 of the entire market's ETF gainers list.

On the news front, senior officials recently conducted research on computing power network construction in Beijing, Hebei, and Inner Mongolia, stating that computing power is a crucial component of national comprehensive strength and emphasizing the need to accelerate the construction of a nationally integrated computing power network. Furthermore, the 2026 Google Developer Conference commenced today, potentially drawing attention to on-device AI. Bank of China Securities pointed out that leading companies' continued investment in model lightweighting and on-device computing power is gradually lowering the barriers for terminal deployment, providing clearer technical pathways and cooperation foundations for chips, modules, terminals, and applications. The on-device AI sector continues to benefit. On the performance front, Cambricon Technologies Corporation Limited successfully removed its "U" suffix in March, marking a transition for AI enterprises from a period of technological investment to one of commercial returns. Driven by AI computing power demand, the domestic AI industry chain may be approaching an inflection point in its performance cycle. At the industry level, the market may have underestimated the catalytic effect of the DeepSeek-V4 release on the domestic computing power industry chain. Guotai Junan Securities stated that significant progress has been made in the native adaptation of DeepSeek-V4 with domestic chips, which could reshape the global AI industry chain's profit distribution landscape, with the hardware segment likely to be the first to benefit from industry development. Guosen Securities noted that, from a medium-term perspective, high-growth sectors like technology with upward industry trends remain important directions. The resonance of policy support and industrial breakthroughs means AI technology continues to be a primary theme in the A-share market, with areas like AI applications and computing hardware deserving attention.

The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC (589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561) focus on the domestic AI industry chain. Their constituent stocks include leading domestic GPU companies (e.g., Cambricon Technologies Corporation Limited), leading domestic ASIC companies (e.g., Verisilicon Microelectronics(Shanghai)Co.,Ltd.), and leading AI application companies (e.g., Kingsoft Office). The semiconductor industry accounts for nearly half of the weight, giving the fund strong offensive characteristics; the software industry accounts for over thirty percent, positioning it to potentially benefit from a catch-up rally in AI applications. Simultaneously, this ETF is a margin trading and securities lending target, making it an efficient tool for gaining exposure to domestic computing power.

Risk Disclosure: The HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC passively tracks the SSE STAR Market Artificial Intelligence Index. The base date for this index is December 30, 2022, and it was released on July 25, 2024. The index's annual gains/losses for 2023 and 2024 were 12.68% and 32.36% respectively. The index's constituent stocks are adjusted according to its compilation rules, and its back-tested historical performance does not indicate future results. Individual stocks and index constituents mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk rating of the HUABAO SHANGHAI SCIENCE AND TECHNOLOGY INNOVATION BOARD ARTIFICIAL INTELLIGENCE TRADING OPEN ENDED INDEX SEC as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. Please refer to the sales agency for the final suitability matching opinion. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to the reader, nor is there any liability for 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 results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution in funds.

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