On Wednesday, June 10th, the global optical communications sector experienced a synchronized decline, with an AI-focused ETF heavily weighted in CPO (Co-Packaged Optics) optical modules falling over 3%. Notably, Suzhou Tfc Optical Communication Co.,Ltd. and Guangku Technology Co.,Ltd. led the losses, dropping more than 7%. Suzhou Zhongji Innolight Co.,Ltd. closed down 2.8%, while New Essex Communication Technologies Co.,Ltd. fell over 1%.
Among popular ETFs, the leading AI ETF on the ChiNext board by size and liquidity, the ChiNext Artificial Intelligence ETF (159363), closed down 3.1% intraday, once again falling below its 20-day moving average. Trading volume contracted, with turnover reaching 1.3 billion yuan. Real-time subscription and redemption data indicated intense capital flow activity, ultimately resulting in a net inflow of 14 million fund units.
Root Cause of the CPO Sell-Off
The downturn in the CPO optical module sector appears to have been triggered by a research report. According to reports, a note from the research firm SemiAnalysis suggested NVIDIA's timeline for shipping its 800VDC power architecture could be delayed until after 2028, while mass production of CPO technology might be pushed back to 2028 or even 2029. This simultaneous downward revision of both expectations caught the market off guard.
However, the report did not negate CPO's status as a crucial future direction for data center network architecture. It clarified that the core reason for the delay lies in unresolved engineering challenges, not a disappearance of demand. In fact, some Near-Packaged Optics (NPO) projects might even see accelerated development as a result.
Long-Term Outlook Remains Positive
Has the rally in CPO optical modules come to an end? Most institutional analysts maintain a long-term bullish view.
Great Wall Securities posits that as AI clusters expand exponentially, CPO combined with silicon photonics will gradually become the core choice due to advantages in bandwidth and power consumption. The full-scale mass production of NVIDIA's Spectrum-X Ethernet silicon photonics technology is expected to further propel this trend and help silicon photonics and CPO technologies quickly overcome short-term bottlenecks. During the shift from scale-out to scale-up architectures, CPO's penetration rate is anticipated to increase significantly, leading the firm to remain optimistic about investment opportunities across the entire silicon photonics and CPO industry chain.
From a current perspective, GF Securities believes that based on fundamentals, confidence in optical communications investments should remain firm. They suggest that the current pullback presents an opportunity to focus on leading optical communication companies, advocating for fully utilizing this window. Within the optical module manufacturer segment, attention should be given to top-tier manufacturers with strong material supply chain capabilities, as they possess greater ability and higher certainty in delivering earnings this year and next. These leaders are also likely to be among the first to benefit from scale-up optical interconnect scenarios.
Accessing Optical Modules and AI Applications
For investors seeking exposure to both optical modules and AI application opportunities, a key focus could be the aforementioned ChiNext Artificial Intelligence ETF (159363)—the largest and most liquid fund in its category—along with its off-exchange feeder funds (Class A: 023407, Class C: 023408). The fund's underlying index currently has an optical module weighting exceeding 50% and a significant allocation to leading AI stocks, with approximately 30% of its portfolio positioned in AI applications, making it representative of both computing power and AI application themes.
Key Fund Metrics
It is noteworthy that as of June 5, 2026, the ChiNext Artificial Intelligence ETF (159363) had reached a size of 7.507 billion yuan, ranking first in size within the AI-themed investment space across the STAR and ChiNext boards. Its average daily turnover over the past six months exceeded 800 million yuan, also leading the AI ETF segment in trading activity.
Data source: Shanghai and Shenzhen Stock Exchanges.
*Institutional views referenced from: Great Wall Securities report "NVIDIA Spectrum-X Ethernet Silicon Photonics Technology Enters Full Mass Production, Maintaining Positive Outlook on Silicon Photonics + CPO Industry Chain Investment Opportunities"; GF Securities report "Undeterred by Market Volatility, Continued Optimism on the Optical Interconnect Industry".
ETF Fee Information
Investors should note that subscription and redemption agents may charge a commission of up to 0.5% when subscribing for or redeeming fund units. Intraday trading fees are subject to the rates charged by securities firms, and no sales service fee is levied.
Feeder Fund Fee Information
For the ChiNext Artificial Intelligence ETF Feeder Fund Class C, no subscription fee is charged. A redemption fee of 1.5% applies for holdings under 7 days, and 0% for 7 days or more. A sales service fee of 0.3% per annum applies. For the ChiNext Artificial Intelligence ETF Feeder Fund Class A, subscription fees are 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat fee of 1,000 yuan per transaction for 2 million yuan or above. The redemption fee structure is identical to Class C. No sales service fee is charged for Class A.
Risk Disclosure
The ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index (Base Date: December 28, 2018; Release Date: July 11, 2024). The index's annual performance from 2021 to 2025 was: +17.57%, -34.52%, +47.83%, +38.44%, and +106.35%, respectively. Index constituents are adjusted per its compilation rules, and its back-tested historical performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only; individual stock descriptions are not investment advice and do not represent the holdings or trading intentions of the fund manager. The fund manager assesses this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) or higher risk-tolerance investors. Suitability matching opinions are subject to the selling institution. All information herein (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or predictions herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past fund performance is not indicative of future results. The performance of other funds managed by the fund manager does not guarantee this fund's future performance. Invest with caution.
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