Friday (October 23) saw heavyweight ChiNext stocks surge strongly in the afternoon, with both computing power and AI applications showing active performance, driving the underlying index of the high-"optical" ChiNext Artificial Intelligence ETF Huabao (159363) to stage a dramatic reversal and close up nearly 4%. The index had earlier touched a new low for the year in morning trading, with a single-day amplitude exceeding 9%, as capital continued to pay close attention to positioning opportunities.
Physical AI ignited the application side: in the software sector, Sangfor Technologies and Hithink RoyalFlush led gains, both rising more than 12%, while Chinese Online and Kunlun Wanwei climbed over 6%. In the chip sector, edge-side SOC chip maker SigmaStar Technology gained more than 9%. Optical module leaders spearheaded the computing power counterattack: Zhongji Innolight fell over 6% intraday before surging in a straight line to close up nearly 4%, T&S Communications rose nearly 2%, and Eoptolink Technology gained more than 1%.
Friday's early session saw the index probe a new year-to-date low, but the afternoon brought a reversal into positive territory driven by the combined strength of AI applications and computing power hardware. Two underlying threads emerged: first, the physical AI theme demonstrated strong continuity, lifting the software and chip application segments; second, midday announcements from "Yi Zhong Tian" boosted confidence, with optical module leaders leading the computing power counterattack.
Physical AI theme shows strong continuity, poised to drive sustained strength in AI applications
The logic behind physical AI has shifted from conceptual narrative to verifiable industry signals: Unitree's G1, driven by GPT-6, completed autonomous operations without pre-training, and Wang Xingxing assessed that the window for physical AI to be "broken through" lies within 1 to 3 years, with embodied intelligence's "ChatGPT moment" approaching. The industry logic has switched from "technology demonstration" to "engineering delivery," and the application side is no longer a distant vision but has entered a trackable implementation rhythm. The theme has the foundation to continue spreading toward software, chips, and other AI application directions.
"Yi Zhong Tian" midday announcements directly reversed sentiment, triggering an afternoon rebound in optical modules
Zhongji Innolight confirmed that overseas orders have been placed through 2027, with some customers providing 2028 guidance. Eoptolink Technology simultaneously launched an 800 million to 1 billion yuan buyback and confirmed that 1.6T products have entered a phase of sustained volume ramp-up. T&S Communications emphasized abundant orders on hand and an unchanged CPO/NPO production ramp-up pace. The three leaders responded to market doubts about prosperity with order visibility and real capital buybacks. The previously oversold computing power hardware gained fundamental anchoring, and the afternoon rally was the result of resonance between sentiment repair and value confirmation.
On a weekly basis, the ChiNext Artificial Intelligence Index continuously probed year-to-date lows this week, with valuation digestion relatively thorough, and catalysts from both computing power and application sides are now resonating. As AI remains the core mainline of growth, hardware prosperity is expected to extend through 2028, AI application implementation is accelerating, and the technology sector is gradually offering left-side positioning conditions. Short-term fluctuations do not change the medium-term industry trend; pullbacks instead provide opportunities for phased positioning. The current positioning window for ChiNext artificial intelligence deserves attention.
Positioning in optical module leaders plus AI applications
Investors may consider the ChiNext Artificial Intelligence ETF Huabao (159363) and its off-exchange feeder funds (Class A 023407, Class C 023408), focusing on optical module CPO leaders while also covering AI applications. The underlying index has a combined weight of over 35% in "Zhongji Innolight + Eoptolink Technology + T&S Communications," making it a core flagship for AI computing power. Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Note: As of September 30, 2026, according to the China Securities Index, the top three constituents of the ChiNext Artificial Intelligence Index are Eoptolink Technology (weight 12.98%), Zhongji Innolight (weight 12.09%), and T&S Communications (weight 10.8%). Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial conditions and risk tolerance, paying close attention to position and risk management. ETF fee disclosure: When investors subscribe to or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%. On-exchange trading fees are subject to actual charges by securities companies, with no sales service fee. Feeder fund fee disclosure: Huabao ChiNext Artificial Intelligence ETF Initiating Feeder Fund C charges no subscription fee; redemption fee is 1.5% within 7 days and 0% for 7 days (inclusive) or more; sales service fee is 0.3%. Huabao ChiNext Artificial Intelligence ETF Initiating Feeder Fund A charges a subscription fee of 1% for amounts under 1 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for 2 million yuan (inclusive) and above; redemption fee is 1.5% within 7 days and 0% for 7 days (inclusive) or more; no sales service fee is charged. According to the fund manager's assessment, the risk level of ChiNext Artificial Intelligence ETF Huabao is R4-medium-high risk, suitable for aggressive (C4) and above investors, with suitability matching opinions subject to the sales institution. Risk disclosure: ChiNext Artificial Intelligence ETF Huabao passively tracks the ChiNext Artificial Intelligence Index, whose base date is December 28, 2018, and launch date is July 11, 2024. The index's annual returns for 2021-2025 were: 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, with corresponding annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. Index constituent composition is adjusted in a timely manner according to the index compilation rules, and its backtested historical performance does not predict future index performance. Index constituents mentioned in this article are for display purposes only, and individual stock descriptions do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund under the manager. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for any investment decisions they make independently. Additionally, any views, analyses, and forecasts in this article do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of this article's content. Fund investment involves risks, past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
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