In early trading on the 11th, computing power stocks opened high but trended downward, with the CPO (Co-Packaged Optics) optical module sector weakening. Suzhou TFC Optical Communication led the decline, dropping over 7%, while Zhongji Innolight fell more than 4% and Eoptolink dipped over 1%. The ChiNext AI ETF (159363), heavily weighted in optical module leaders, surged initially but later retreated, with its intraday price dropping over 2% at one point. Real-time turnover exceeded 380 million yuan, with capital inflows surpassing 60 million units during the dip.
First Shanghai noted that short-term volatility does not change the high-growth trend of computing power hardware in the coming years. They advised investors to focus on core indicators such as computing power CAPEX, token consumption, and ARR, rather than short-term fluctuations. While factors like sector rotation and market sentiment may impact short-term performance, they do not alter the strong fundamentals of computing power. With AI applications at a commercialization inflection point globally, they remain highly optimistic about sustained high demand for computing power driven by AI.
CITIC Securities highlighted that China's 15th Five-Year Plan emphasizes accelerating breakthroughs in the new technological revolution and industrial transformation, including a comprehensive "AI+" initiative. They believe the world is currently in an AI-driven industrial revolution, comparable in impact to the Industrial Revolution. Unlike recent trends like cloud computing or new energy, AI's influence is far-reaching, requiring a long-term perspective. Thus, they remain bullish on AI-driven computing power demand and applications.
To capture opportunities in core computing power sectors like optical modules, investors are advised to focus on the ChiNext AI ETF (159363) and its off-exchange counterparts (Class A: 023407, Class C: 023408). The underlying index heavily weights optical module leaders, with over 54% exposure to the sector. In terms of sector allocation, more than 70% is in computing power, while over 20% targets AI applications, efficiently capturing AI-related market trends. (Data as of October 31, 2025.)
Among peers, as of October 31, the ChiNext AI ETF (159363) had a scale exceeding 3.5 billion yuan, with average daily turnover over 700 million yuan in the past month, ranking first among seven ETFs tracking the ChiNext AI Index in both size and liquidity.
Risk Disclosure: The ChiNext AI ETF passively tracks the ChiNext AI Index, with a base date of December 28, 2018, and a release date of July 11, 2024. The index's annual performance from 2020 to 2024 was 20.1%, 17.57%, -34.52%, 47.83%, and 38.44%, respectively. Constituent stocks are adjusted per index rules, and past performance does not guarantee future results. Stock mentions are for illustrative purposes only and do not constitute investment advice or reflect fund holdings. The fund is rated R4 (medium-high risk) and suitable for aggressive (C4) or higher-risk investors. Investment decisions should be made independently, and no liability is assumed for losses arising from the use of this information.
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