On Thursday (October 22), computing power hardware stocks weakened across the board, with leading optical module names posting steep declines. The underlying index of the high-"optical" ChinaAMC ChiNext Artificial Intelligence ETF (159363) fell 6% in a single day, turning its year-to-date gain negative and hitting a new low for this round of adjustment, drawing heavy investor attention.
Weighted heavyweights "Yi Zhong Tian" kept sliding. Eoptolink Technology Inc Ltd (ASX: 300502) plunged more than 12%, with its market value falling below the RMB 400 billion mark, while Tianfu Communication Optical Communication Co Ltd (ASX: 300394) and Zhongji Innolight Co Ltd (ASX: 300308) dropped over 8%. The memory storage segment weakened in tandem, with Shenzhen Xiechuang Data Co Ltd (ASX: 300857) down more than 8% and Shenzhen Longsys Electronics Co Ltd (ASX: 301308) down more than 2%.
The continued selloff in computing power hardware stocks stems from four core pressures:
First, diverging earnings signals from tech giants have sparked doubts. Tesla cut capital expenditure, Meta doubled down on AI bets, and Lam Research's guidance missed expectations. The contradictory signals from giants have made the market question the sustainability of the AI rebound. "Worry whether spending rises or falls" — the AI capex narrative may no longer be able to please the market.
Second, prior gains were too large, and profit-taking continues to be realized. The sector's valuation was previously at a high level, and once the adjustment began, the willingness to lock in gains was strong. Capital instead flowed to new hotspots such as humanoid robots, and this seesaw effect ran through the entire adjustment.
Third, market sentiment has faded, and the sector was dragged into a passive catch-down. A-share turnover shrank, the breadth of declines widened, and Hong Kong chip stocks and Asia-Pacific equity indices weakened in sync. Against the backdrop of shrinking risk appetite, computing power hardware lacked independent momentum to stabilize.
Fourth, external liquidity disturbances weighed on high valuations. U.S. Treasury yields fluctuated at elevated levels and hawkish Fed remarks were repeated, while growth sectors are sensitive to interest rates, keeping valuation repair under pressure.
Overall, market analysis points out that in the first half of the year, some parts of the AI industry chain rose quickly and trading became crowded. When the pace of overseas AI capital expenditure and progress in model commercialization fluctuate in stages, valuations returning to fundamentals is the normal functioning of market mechanisms. Over the long term, this calibration will be more helpful to quality companies that truly possess technical barriers and the ability to deliver on orders. This round of selling in computing power hardware is more likely an adjustment at the sentiment and capital level rather than a deterioration in industry fundamentals. During the adjustment, low-level positioning opportunities deserve attention.
In core segments represented by optical modules and computing power infrastructure, the ramp-up pace of 1.6T high-speed optical module products is clear, and leading companies' revenue and profit growth continue to validate the industry's prosperity. The AI industry chain will diverge internally, and leading companies with global competitiveness still have medium- to long-term allocation value after valuation digestion.
To position in optical module leaders plus AI applications, attention is suggested on ChinaAMC ChiNext Artificial Intelligence ETF (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 more than 35% in "Zhongji Innolight + Eoptolink + Tianfu Communication," making it a core standard-bearer for AI computing power.
Data source: Shanghai and Shenzhen stock exchanges, Wind, etc. Note: As of 2026.9.30, according to the China Securities Index, the top three constituents of the ChiNext Artificial Intelligence Index were Eoptolink (weight 12.98%), Zhongji Innolight (weight 12.09%), and Tianfu Communication (weight 10.8%). Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors must invest rationally based on their own funding conditions and risk tolerance, and pay close attention to position and risk management.
ETF fee disclosure: When investors subscribe to or redeem fund shares, subscription and redemption agencies may charge a commission of no more than 0.5%. On-exchange trading fees are subject to what securities companies actually charge, and no sales service fee is charged. Feeder fund fee disclosure: ChinaAMC ChiNext Artificial Intelligence ETF feeder fund Class C does not charge a subscription fee; the redemption fee is 1.5% within 7 days and 0% from 7 days (inclusive) onward; the sales service fee is 0.3%. ChinaAMC ChiNext Artificial Intelligence ETF feeder fund Class A charges a subscription fee of 1% for amounts below RMB 1 million, 0.6% for RMB 1 million (inclusive) to RMB 2 million, and RMB 1,000 per transaction for RMB 2 million (inclusive) and above; the redemption fee is 1.5% within 7 days and 0% from 7 days (inclusive) onward; no sales service fee is charged. According to the fund manager's assessment, the risk level of ChinaAMC ChiNext Artificial Intelligence ETF is R4-medium-high risk, suitable for aggressive (C4) and above investors, and the suitability matching opinion should be subject to the sales institution.
Risk disclosure: ChinaAMC ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index. The index base date is 2018.12.28, and the launch date is 2024.7.11. The index's annual returns from 2021 to 2025 were 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively, while the index's annualized volatility over the same period was 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. The index constituent composition is adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The index constituents mentioned in this article are for display only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading actions 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 must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. A MACD golden cross signal has formed, and these stocks are rising well!
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