On May 6, chip stocks on the Sci-Tech Innovation Board maintained their strong pre-holiday momentum. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190), which provides comprehensive exposure to the chip industry, opened higher with a gap and saw its price rise by 8.65% during the session, reaching a new high since its listing. A majority of its constituent stocks advanced sharply. Hygon Information Technology Co.,Ltd. hit the 20% daily limit-up, while Montage Technology, Biwin Storage Technology Co.,Ltd., Loongson Technology, and Shijia Photonics all recorded double-digit gains. Hygon Information Technology Co.,Ltd., Montage Technology, Biwin Storage Technology Co.,Ltd., and Cambricon Technologies Corporation Limited all reached new historical highs.
Throughout April, the SSE STAR Market Chip Index accumulated a gain of 34.72%, outperforming the Wind All-A Index's increase of 8.69% during the same period by more than 26 percentage points. Note: The SSE STAR Market Chip Index's performance over the past five full years is as follows: +6.87% in 2021, -33.69% in 2022, +7.26% in 2023, +34.52% in 2024, and +61.33% in 2025. The composition of the index's constituents is adjusted according to its compilation rules, and its past performance does not indicate future results.
In after-hours trading on Tuesday in the US, shares of leading chip company AMD surged dramatically, soaring over 16%. According to AMD's performance guidance, its second-quarter revenue is expected to exceed Wall Street forecasts, primarily driven by increased spending on artificial intelligence (AI) infrastructure by global tech giants, fueling strong demand for its data center chips. This validates the industry's super cycle.
Additionally, memory chip giants Micron Technology and SanDisk both reached new all-time highs. Analysis indicates that the collective surge in performance among memory chip leaders is a natural outcome of the chip market shifting to a seller's market: memory suppliers are reallocating more capacity and products to the AI infrastructure sector, which offers higher value, while supply shortages continue to drive up memory chip prices.
Huayuan Securities stated that iterations of AI large models, the large-scale construction of intelligent computing centers, and the widespread adoption of edge AI scenarios are continuously boosting domestic demand for AI computing power. Overall, the industry exhibits characteristics of solid profitability among leading firms, accelerated loss reduction or even profitability turnaround for second-tier manufacturers, and a clear tiered growth pattern. Domestic AI large models are entering a phase of accelerated development, which may lead to growth in the market size and penetration rate of domestic computing power, sustaining a positive outlook for the high prosperity of the domestic computing power sector.
To position for the chip industry's "super cycle," high-volatility 20% limit-up stocks are preferred. Public information shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (589190) and its feeder funds (Class A 021224, Class C 021225) passively track the SSE STAR Market Chip Index. While providing balanced allocation and comprehensive coverage of the chip industry chain, they maintain a weight of over 90% in core areas such as integrated circuits and semiconductor equipment, reflecting high technological content and strong barriers to entry.
Data source: Shanghai and Shenzhen Stock Exchanges, among others. ETF fee explanation: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees collected by stock exchanges and registration institutions. Feeder fund fee explanation: For HUABAO SSE STAR Market Chip ETF Feeder Fund A, the subscription fee (front-end load) is CNY 1,000 per transaction for subscription amounts of CNY 2 million or more, 0.2% for amounts between CNY 1 million (inclusive) and CNY 2 million, and 0.5% for amounts below CNY 1 million. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more. HUABAO SSE STAR Market Chip ETF Feeder Fund C does not charge a subscription fee; the redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more. The sales service fee is 0.2%.
Risk warning: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND passively tracks the SSE STAR Market Chip Index. The index's base date is December 31, 2019, and its release date is June 13, 2022. This product is issued and managed by Huabao Fund. Selling agencies do not assume responsibility for the product's investment, redemption, or risk management. Investors should carefully read the Fund Contract, Prospectus, Fund Product Summary, and other legal fund documents to understand the fund's risk-return characteristics and select a product suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 - Medium to High Risk, suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Past performance of the fund does not predict future results. Funds carry risks, and investment requires caution. Selling institutions (including the fund manager's direct sales agencies and other selling agencies) evaluate the fund's risk based on relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from various selling agencies may not necessarily be consistent, and the risk rating results of the fund product issued by fund selling agencies shall not be lower than the risk rating result determined by the fund manager. The fund's risk-return characteristics described in the fund contract and its risk rating may differ due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
Comments