On Thursday (November 27), A-shares saw notably reduced trading volume, with the ChiNext Index turning negative in late trading after earlier gains exceeding 2%. The heavyweight CPO optical module sector faced profit-taking pressure following consecutive sharp rebounds, showing clear rotation between high and low positions. Frontrunner InnoLight Technology hit a new intraday high before retreating to close down over 3%, while TFC Optical Communication ended 1% lower. Meanwhile, laggard stocks staged catch-up rallies, with Lantech surging 10% at the close and T&S Communications gaining over 7%.
Among popular ETFs, the ChiNext AI ETF (159363)—with over 54% exposure to CPO optical modules—initially jumped over 3% before reversing to close 0.68% lower. Despite the pullback, it remained above all moving averages with daily volatility exceeding 4%, recording RMB 974 million in subdued trading volume.
The medium-to-long-term investment thesis for CPO optical modules remains robust: Demand Side: Global computing power competition drives growth! Overseas cloud providers continue raising capital expenditures, with institutional projections suggesting combined 2025 CAPEX for Microsoft, Amazon, Meta, and Google could hit $363.3 billion (+63% YoY). As Google's TPU challenges Nvidia's GPU, market observers expect dual demand from Nvidia's GB200 and Google's TPUv7 to drive volume expansion of 800G/1.6T optical modules by 2026.
Supply Side: Accelerating tech iteration! Optical component manufacturers are expanding production, potentially easing upstream chip shortages and accelerating downstream module output. Leading module makers are actively increasing global capacity, with sustained demand upgrades for high-speed modules and improving component supply expected to boost earnings growth.
Pricing Dynamics: The sector demonstrates "volume-price synergy." Guosheng Securities notes that amid persistent global computing power demand, optical modules are entering a "dual growth" phase: 1.6T modules initially priced around $1,200 now trade above $2,000 retail, while 800G-and-below products show resilient pricing with slowing declines due to broad-based demand.
Looking ahead to 2026, institutions remain bullish on AI as a core theme. TF Securities highlights investment opportunities in AI computing power chains, noting continuous advancements in both U.S. and Chinese AI development alongside progress in inference applications, recommending ongoing monitoring of AI industry trends.
To capture computing power and AI application opportunities like optical modules, investors may consider the pioneering ChiNext AI ETF (159363) and its feeder funds (Class A 023407/Class C 023408). The underlying index allocates over 54% to optical modules—positioning at the forefront of AI computing power—with 70%+ exposure to computing infrastructure and 20%+ to AI applications, efficiently capturing AI thematic trends (data as of October 31, 2025).
Risk Disclosure: The ETF tracks the ChiNext AI Index (base date: December 28, 2018; launch date: July 11, 2024), which recorded annual gains/losses of 20.1%, 17.57%, -34.52%, 47.83%, and 38.44% from 2020-2024. Index components adjust per rules, with historical performance not indicative of future results. Constituent stock mentions are illustrative only and do not constitute investment advice or reflect fund holdings. The fund carries R4 (higher-risk) classification suitable for aggressive (C4+) investors. Investment decisions based on this information are made at investors' own discretion.
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