Overnight, the three major U.S. stock indices rallied sharply, with the Nasdaq climbing over 2%. Chip stocks broke out collectively, sending the Philadelphia Semiconductor Index up more than 4%. Individually, Advanced Micro Devices (AMD) surged nearly 10%, crossing the $1 trillion market cap mark for the first time; Arm jumped over 17%, Intel rose more than 12%, and Qualcomm advanced over 9%. Likely mirroring the offshore semiconductor momentum, today (September 22), the underlying index of the Science and Technology Innovation AI ETF Huabao (589520)—which holds a 64% semiconductor weighting—gapped up, with intraday prices at one point climbing over 4.95% and currently up 4.11%. The strong rally is targeting an eighth gain in nine sessions. Among constituent stocks, Montage Technology led with gains exceeding 13%, while Montage Technology rose over 9%, Espressif Systems advanced more than 8%, and HengXuan Technology and Hygon Information Technology both gained over 7%. Loongson Technology and Moore Threads also followed with significant increases.
On the news front, the surge in chip stocks is likely tied to the rapid popularity of Meta's AI agent Muse, which has rekindled market enthusiasm for CPUs. Since CPUs are the essential chips needed to run such agents, demand expectations have risen accordingly. Analysts note that the widespread adoption of AI agents will boost inference and infrastructure workloads, benefiting server CPU demand. Essence Securities believes the probability of an AI tech rally returning in the fourth quarter is increasing. For the outlook on this year's AI tech market, the firm offers the following view:
First, in the initial phase (late September), following the digestion of rate-cut negatives, valuation repairs could trigger a modest rebound. In the second phase (late October to November), earnings-driven gains fueled by industry catalysts could produce a larger rebound. Internationally, late October brings U.S. AI leaders' third-quarter earnings and subsequent capital expenditure guidance, alongside Anthropic's market debut; domestically, A-share third-quarter earnings are due at the end of October, paired with DeepSeek's preparation for a STAR Market listing. This period is a critical verification window for AI industry prosperity. If long-end interest rates fall alongside fiscal expectation cooling, a second AI tech wave this year would be all but certain. In the third phase (November to December), valuation shifts and geopolitical volatility could emerge.
The firm asserts that capital markets do not see bull runs without technology, and faith should be placed in an "M-shaped" tech trajectory rather than an "A-shaped" one. Moreover, barring global macro "black swans"—such as aggressive Fed rate hikes or a sharp escalation in the U.S.-Iran conflict—if AI tech earnings growth outpaces the rise in discount rates, asset prices could rally as a hedge. Additionally, if industry fundamentals remain sound, and after a quarter of sentiment digestion with crowded trades retreating to median levels, the odds of an AI tech rally in the fourth quarter are rising, making this the year's decisive factor.
Domestic Substitution Champion, Science and Technology Self-Reliance The Science and Technology Innovation AI ETF Huabao (589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561) focus on the domestic AI supply chain, holding 30 large-cap STAR Market companies that provide foundational resources, technology, and application support for AI. With semiconductor stocks comprising 64% of the portfolio, the ETF offers strong offensive potential. By popular concept metrics, GPU-related stocks account for 40% and AI application stocks for 20%. With a 20% daily price limit, the ETF allows low-threshold access to the science and technology innovation track's breakout potential. Additionally, this ETF is a margin trading target, serving as an efficient tool for one-stop exposure to domestic computing power.
Note: GPU concept and AI application concept weightings are compared against the GPU Index (8841701.WI) and AI Application Index (980112.CNI). Source: Shanghai and Shenzhen stock exchanges, as of 2026.9.18. ETF fee disclosures: The ETF does not charge sales service fees. Subscription and redemption agents may charge commissions up to 0.5%, including fees levied by exchanges and registration institutions. On-exchange trading fees are subject to actual charges by securities firms.
Risk disclosure: The Science and Technology Innovation AI ETF Huabao passively tracks the SSE STAR Market Artificial Intelligence Index, with a base date of 2022.12.30 and publication on 2024.7.25. Index constituent composition adjusts per index rules; backtested historical performance does not predict future index returns. Individual stocks and index constituents mentioned herein are for display only and do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund under the manager. The fund manager rates the risk level of the Science and Technology Innovation AI ETF Huabao as R4-medium-to-high risk, suitable for aggressive (C4) and above investors. Suitability matching opinions should follow sales institution guidance. Any information in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only; investors must bear responsibility for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers, nor are they liable for direct or indirect losses arising from the use of this content. Fund investment carries risks; past performance does not guarantee future results. Performance of other funds managed by the manager does not guarantee this fund's performance. Please invest cautiously. A MACD golden cross signal has formed; these stocks are trending well!
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