The AI industry wave is sweeping across the globe at an unprecedented pace. Within this industrial trend, HuaShang Leading Edge Hybrid Fund has delivered outstanding results by adhering to a clear investment strategy focused on AI as the core theme, prioritizing the overseas computing power supply chain, and allocating to leading domestic computing power enterprises.
As of March 31, 2026, the fund achieved a net asset value growth rate of 143.08% over the past year. This significantly outperformed its benchmark return of 10.94% for the same period, generating an excess return of 132.14%. Data from an authoritative fund rating agency shows that HuaShang Leading Edge Hybrid Fund ranked 11th out of 1,920 peer funds over the past year, placing it in the top 1% of its category.
Fund manager Peng Wu, who manages the HuaShang Leading Edge Hybrid Fund, also co-manages the HuaShang High-End Equipment Manufacturing Stock Fund. Notably, the A-share class of the HuaShang High-End Equipment Manufacturing Stock Fund ranked first in its category over the past five years, with its one-year and three-year performances both within the top ten. This further demonstrates Peng Wu's investment prowess in the technology sector.
Peng Wu graduated from Fudan University with a degree in Microelectronics and Solid-State Electronics. She joined HuaShang Fund in 2021, having served as an electronics industry researcher and fund manager, accumulating profound industry research expertise. Peng Wu specializes in technology sector research and investment, leveraging solid industry analysis to accurately identify genuine industrial trends and consistently discover high-quality companies with "true growth" potential amidst the advancing wave of technological innovation.
Peng Wu believes the key to investing in the technology sector lies in making early judgments to accurately identify real industrial opportunities from numerous tech trends. In her view, technological innovation and investment opportunities over the next five years will likely continue to revolve around AI.
Reflecting on AI developments in 2025, Peng Wu stated that major overseas tech companies have continuously revised their AI capital expenditures upward since 2025, marking an era of trillion-dollar market caps and hundred-billion-dollar spending. Continuous model iterations, exemplified by the success of Gemini 3.0, confirm that large companies will maintain high capital investment. She also noted that both straightforward scaling of pre-training and more gradual post-training methods have proven effective, with improvements in mathematical logic, AI agents, and multimodal capabilities. Furthermore, commercialization is showing promise; while a full return on equity cycle isn't yet established, substantial commercial applications have emerged, including products generating billions in revenue and companies reaching ten-billion revenue levels. Considering AI's boost to core businesses of large firms, plus revenue from chatbot subscriptions and coding services, AI-related revenue reached hundreds of billions of US dollars in 2025.
In 2025, domestic open-source models gained dominance, though computing power faced constraints. Stimulated by Deepseek in Q1 and increased graphics card shipments, internet data center tenders from major companies declined significantly in Q2 and Q3, but resumed growth in Q4. On the application side, monetization paths are relatively clearer overseas, with OpenAI's 2030 revenue target of $200 billion seen as achievable. Domestically, B2C business models are still in an exploratory phase, with AI phone assistants potentially becoming a key competitive arena in the Chinese B2C market.
Looking ahead to 2026-2027, Peng Wu believes AI technology will continue iterating, with innovations emerging in pre-training, reinforcement learning, synthetic data, multimodality, and other areas, leading to multidimensional improvements in model capabilities. However, the industry landscape remains fluid, evolving from US leadership to a competitive race between the US and China, and from OpenAI's dominance to a structure of two superpowers and several strong contenders. Anthropic's annual recurring revenue surpassed $30 billion. Beyond coding applications, AI agents are gradually being deployed. Meanwhile, several cloud service providers have raised their capital expenditure guidance, improving visibility for the industry in 2027/2028. During the data center upgrade process, optical communication remains the strongest trend. Additionally, orders and guidance from North American suppliers indicate accelerating demand for data center interconnectivity. Currently, Peng Wu remains optimistic about optical modules, optical chips, storage, high-end PCB materials, gas turbines, power supplies for server racks, and liquid cooling technologies. She suggests domestic computing power in 2026 might resemble overseas computing power from a year and a half ago. After further tightening of computing resources, domestic computing power is achieving breakthroughs from equipment and fabs to chips, with enhanced capabilities in advanced process mass production. She is positive on GPUs & ASICs, fabs, and equipment.
Furthermore, Peng Wu anticipates a new global semiconductor upcycle beginning in 2026, potentially leading to price increases across the产业链 from fabs and packaging/testing to chips. During the downcycle from late 2021 to 2024, capital expenditure across the entire chain was relatively restrained. AI is率先 driving the computing power-related产业链 into an upcycle, intensifying pressure on non-AI segments. This crowding-out effect is expected to persist throughout 2026, making "price increases" a potential annual theme, especially as the memory cycle might last longer than market expectations. She is optimistic about fabs, packaging/testing, and storage.
Regarding specific portfolio allocation, Peng Wu stated in the fund's latest periodic report that for overseas computing power, the fund优选 optical modules, fiber optic cables, and optical chips, while maintaining some allocation to new technologies like co-packaged optics. After nearly three years of rapid development in overseas computing power, AI-related automation equipment is scaling up to enhance产业链 efficiency, leading to new positions in this sector. Overall, the fund's investment strategy remains centered on AI as the core theme, focusing on the overseas computing power chain, allocating to leading domestic computing power enterprises, and semiconductor beneficiaries of price increases. The approach involves selecting high-quality growth stocks based on their industry cycle position and competitive landscape to achieve medium-to-long-term investment returns.
Performance data for HuaShang Leading Edge Hybrid Fund: Net asset value growth rates from 2021 to 2025 were 5.43%, -17.00%, -16.39%, -3.68%, and 101.63% respectively. Corresponding benchmark returns were -6.90%, -14.62%, -9.78%, 11.64%, and 14.51%. The fund's 3-year and 5-year NAV growth rates were 88.97% and 90.84%, compared to benchmark returns of 11.08% and -9.78% for the same periods.
Risk Warning: Fund managers aim to manage fund assets with integrity, diligence, and prudence but cannot guarantee profits or minimum returns. Past performance and NAV levels do not indicate future results. The performance of other funds managed by the same company or manager does not guarantee the performance of this fund. Investing in Hong Kong-listed stocks via Stock Connect involves exchange rate and overseas market risks. The views expressed do not constitute investment advice. Market risks exist; investors should exercise caution and carefully read the fund's legal documents before investing.
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