On November 10, the AI sector continued its correction, with the ChiNext AI ETF (159363), heavily weighted in computing hardware like optical modules, dropping over 2% intraday. Leading optical module stocks led the decline, with Eoptolink Technology falling over 5%, InnoLight Technology down over 4%, and TFC Optical Communication dropping more than 2%. On the upside, memory chip leader Ingenic Semiconductor bucked the trend with a surge of over 10%, while AI application stocks like BlueFocus Communication and Chinese Online rose over 4%.
Among popular ETFs, the ChiNext AI ETF (159363), which holds major optical module players, fell over 2% intraday, breaching its 20-day moving average. The fund saw real-time turnover exceeding 350 million yuan, with net subscriptions of 346 million units during the dip.
In the memory chip sector, reports indicate that SanDisk, a leading NAND flash manufacturer, raised contract prices by up to 50% in November. This reflects tightening supply driven by surging demand from AI data centers and severe wafer supply constraints. This marks SanDisk’s third price hike this year, following a 10% increase in April and another 10% across all channels and consumer products in September, which triggered similar moves by Micron and other memory giants.
Regarding computing power opportunities, TF Securities noted that despite recent market volatility, it remains bullish on core players in the computing power supply chain. The firm expects 2025 to mark the beginning of China’s AI infrastructure race and a year of application breakthroughs, with ongoing progress in both U.S. and Chinese AI development and inference capabilities. Investors are advised to monitor AI industry trends and application investment opportunities.
Globally, the computing power supply chain remains robust, with corporate earnings reflecting strong AI-related demand. Domestically, continued investment in AI by major players like Alibaba and ByteDance supports sustained growth in the sector and AIDC-related supply chains.
For exposure to core computing power plays like optical modules, the ChiNext AI ETF (159363) and its feeder funds (Class A: 023407, Class C: 023408) are recommended. The underlying index allocates over 54% to optical module leaders ("Yi-Zhong-Tian" trio) and more than 70% to computing power, with over 20% in AI applications, effectively capturing AI thematic trends (data as of October 31, 2025).
Among peers, the ChiNext AI ETF (159363) ranked first in size (over 3.5 billion yuan) and average daily turnover (700 million yuan) among seven ETFs tracking the ChiNext AI Index as of October 31.
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 from 2020-2024 were 20.1%, 17.57%, -34.52%, 47.83%, and 38.44%. Past performance does not predict future results. Constituent stocks are for illustrative purposes only and do not constitute investment advice or reflect fund holdings. The fund is rated R4 (higher risk) and suitable for aggressive (C4) or higher-risk investors. Investment decisions based on this information are solely the investor’s responsibility.
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