On Friday, August 7, the GEM AI Index continued its rebound, with AI application concept stocks leading the charge. 中文在线 (Chinese Online) surged nearly 7%, while memory storage leaders 江波龙 (Longsys) and 北京君正 (Ingenic Semiconductor) both rose over 5%. Optical module and CPO sector leaders showed notable intraday strength, with 天孚通信 (Tianfu Communication) closing up more than 2%. However, 中际旭创 (Zhongji Innolight) experienced a sudden late-session sell-off, closing down nearly 4% after an intraday swing exceeding 10%.
Among actively traded ETFs, the GEM AI ETF 华宝 (159363), which heavily weights optical module leaders, briefly surged nearly 3% intraday before being dragged down by the heavyweight's plunge, turning temporarily red. It quickly recovered and closed up nearly 1%, securing its fifth consecutive daily gain.
The afternoon sell-off in 中际旭创 (Zhongji Innolight) appears to be linked to a specific news item. US optical module maker AAOI (Applied Optoelectronics) announced a large-scale expansion plan during its earnings call, sparking concerns about a shift in the competitive landscape. AAOI's call indicated a goal to triple its monthly production capacity this year, requiring more automated equipment. The company plans to produce 650,000 units of 800G/1.6T products per month by year-end and aims to increase capacity tenfold next year. This raised fears of long-term market share erosion for domestic Chinese players, despite some analysts suggesting the short-term impact is limited and that AAOI's technology still relies on leading Chinese firms. The negative sentiment triggered the stock's decline.
Focusing on the broader optical module sector, three key drivers support its medium-to-long-term growth: Capital expenditure upgrades confirm industry prosperity, with high cloud revenue growth validating commercial adoption. CITIC Securities believes that as cloud providers’ earnings increasingly demonstrate AI's role in driving business growth, AI cluster scales will expand further. Optical interconnects, as a crucial component of cluster networks, will experience sustained high growth driven by three factors: higher GPU-to-switch ratios, port speed upgrades, and the "optical replacement of copper" trend. The firm is bullish on the medium-to-long-term outlook for the optical communication sector. Optical interconnect investment is intensifying, with CPO mass production accelerating cluster restructuring. A research report from Kaiyuan Securities notes that Nvidia's Rubin Ultra is shifting focus to NVL576-scale large-scale interconnection, with the system architecture featuring eight 72-GPU racks interconnected via NPO (Nonlinear Passive Optical) solutions. Meanwhile, CPO has entered mass production and is expected to be heavily integrated into global AI factories in the second half of the year, potentially accelerating the adoption of optical interconnect technology and driving a structural revaluation of optical communication value. Valuations have been adjusted down to attractive levels, with oversold conditions laying the groundwork for recovery. Guosheng Securities believes that the previously overcrowded trading structure in the optical module sector is improving, with short-term risks largely released. While bottom-fishing and portfolio rebalancing in the bottom area still require time, the firm suggests waiting for the gradual accumulation of positive catalysts and a gradual recovery in market confidence.
Beyond core AI infrastructure plays like optical modules, the AI trading theme also warrants attention on the application side. Drawing parallels to the US SaaS benchmark, Palantir posted an earnings beat and surged, indicating the market is assigning a high premium to AI application monetization capabilities. The GEM AI index gathers a significant number of "software + hardware" combination targets (e.g., industry-specific vertical applications). Compared to pure hardware communication stocks, these companies are more likely to benefit from a dual narrative of earnings realization from the application layer and a valuation system re-rating. The GEM AI ETF 华宝 (159363) and its off-exchange feeder funds (A-share: 023407, C-share: 023408) focus on optical module and CPO leaders while also incorporating AI applications. The underlying index comprises approximately 40% of 中际旭创 (Zhongji Innolight) + 新易盛 (Eoptolink) + 天孚通信 (Tianfu Communication), positioning it as a core AI computing power vehicle. The GEM AI ETF 华宝 (159363) has a latest scale exceeding RMB 7.4 billion, with an average daily turnover of over RMB 1 billion in the past six months, leading eight other ETFs tracking the same index in terms of scale and liquidity. (Data source: Shanghai and Shenzhen stock exchanges, etc.)
*Institutional references: CITIC Securities "AI Investment Return Loop is Clear, Firmly Bullish on Optical Communication Sector"; Kaiyuan Securities "Time for Optical Communication Allocation"; Guosheng Securities "Optical: Panic Unwinding, Turning Point for the Better."
ETF fee explanation: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission of up to 0.5%. On-exchange trading fees are subject to actual charges by the securities firm, with no sales service fee. Feeder fund fee explanation: The GEM AI ETF Feeder C-share does not charge a subscription fee; redemption fee is 1.5% for holdings within 7 days, 0% for holdings of 7 days or more; sales service fee is 0.3%. The GEM AI ETF Feeder A-share subscription fee is 1% for amounts under RMB 1 million, 0.6% for amounts between RMB 1 million and 2 million, and RMB 1,000 per order for amounts over RMB 2 million; redemption fee is 1.5% for holdings within 7 days, 0% for holdings of 7 days or more; no sales service fee. Risk warning: The GEM AI ETF 华宝 passively tracks the GEM AI Index, which has a base date of December 28, 2018, and a launch date of July 11, 2024. The index's annual returns from 2021 to 2025 were: 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The index's annualized volatility over the same period was 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. The constituent stocks are adjusted according to the index's compilation rules. Back-tested historical performance does not indicate future index performance. The constituent stocks mentioned in the text are for demonstration purposes only. Descriptions of individual stocks do not constitute any form of investment advice, nor do they represent the holdings or trading activity of any fund managed by the fund manager. According to the fund manager's assessment, the GEM AI ETF 华宝 has a risk rating of R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. The matching opinion should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for their own independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not guarantee 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 should be conducted with caution. MACD Golden Cross Signal Formed, These Stocks Are Rising Well!
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