On Friday, July 31, AI trading made a strong comeback, with the ChiNext AI sector seeing a notable recovery. Optical module leaders rebounded collectively, with TFC Optical Communication and Suzhou TFC Optical Communication both closing nearly 7% higher, while Zhongji Innolight rose over 4%. AI application stocks erupted in a wave of limit-up gains, with EasyClick, Kunlun, Yidian Global, and BlueFocus all hitting the 20% daily limit. Computing power leasing also strengthened, with Wangsu Science & Technology surging over 17% and Xieshuang Innovation Data rising over 15%.
Among popular ETFs, the ChiNext AI ETF, which heavily holds optical module leaders, gapped up at the open and closed 7.55% higher, reclaiming the annual moving average and the 5-day moving average. From a technical perspective, this may signal a strengthening of both short-term and long-term trends. On the news front, driven by better-than-expected cloud computing earnings from US tech giants, US chip stocks staged a violent rebound overnight, while South Korean stocks led the rally in Asia-Pacific markets.
Amazon reported that its cloud business saw strong growth in the second quarter, driven by robust demand for AI. The company also raised its full-year capital expenditure forecast. Amazon expects to invest more heavily in the AI sector, with capital spending projected to reach $220 billion this year. Galaxy Securities stated that as global cloud providers continue to increase their investment in AI infrastructure, demand for servers, switches, and technologies like CPO and high-speed optical modules will grow. As AI training and inference scales expand, data center internal network architectures will continue to upgrade. High-speed optical modules, as a key component of AI data center interconnections, are expected to benefit from the ongoing expansion of AI capital expenditure. Meanwhile, as CPO technology matures, the industry chain will further extend to optical chips, optical engines, and advanced packaging.
AI applications have also seen a "Yi Zhong Tian" style rally. Previously, the term "Yi Zhong Tian" referred to three optical module (CPO) leaders: Suzhou TFC Optical Communication, Zhongji Innolight, and TFC Optical Communication, which were star stocks in the current wave of AI computing infrastructure. The new "Yi Zhong Tian" represents a new combination emerging as investment hotspots shift to the application side, including EasyClick, Kunlun, and Tianlong Group. Guosheng Securities noted that the significant leap in the capabilities of domestic open-source models has raised the "baseline water level" for the entire industry. They are optimistic about the acceleration of downstream application penetration and token consumption in the second half of the year. As the frontier of open-source models rapidly approaches that of closed-source SOTA models, the "minimum capability level" available to the entire industry is significantly raised, allowing downstream application developers to access near-frontier capabilities at a lower cost. They recommend focusing on applications and agent chains with real-world scenarios, data barriers, and engineering capabilities.
The ChiNext AI ETF and its off-exchange linked funds (Class A: 023407, Class C: 023408) focus on CPO leaders in optical modules. The underlying index has a combined weight of approximately 40% in Zhongji Innolight, Suzhou TFC Optical Communication, and TFC Optical Communication, making it a core player in AI computing. Furthermore, the ChiNext AI ETF has a latest scale of over 63 billion yuan and an average daily turnover of over 10 billion yuan in the past six months, leading the eight ETFs tracking the same index in terms of scale and liquidity. Data source: Shenzhen Stock Exchange, etc. Reference source for institutional views: Galaxy Securities, "Overseas Computing Power Opens a New Fiscal Quarter, Optical Communication High Prosperity Solidified"; Guosheng Securities, "Open-Source Models Raise the 'Baseline Water Level' for AI Models, Favoring Application Penetration."
ETF fund related fees: When investors subscribe for or redeem fund shares, the subscription and redemption agency may charge a commission of up to 0.5%. On-exchange trading fees are subject to the actual charges of the securities firm, with no sales service fee. Linked fund related fees: The ChiNext AI ETF-linked Fund Class C does not charge a subscription fee; the redemption fee is 1.5% for holdings within 7 days and 0% for holdings of 7 days or more; the sales service fee is 0.3%. The ChiNext AI ETF-linked Fund Class A has a subscription fee of 1% for amounts under 1 million yuan, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or more; the redemption fee is 1.5% for holdings within 7 days and 0% for holdings of 7 days or more; no sales service fee is charged. Risk warning: The ChiNext AI ETF passively tracks the ChiNext AI Index, which has a base date of December 28, 2018, and a release 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 annualized volatility of the index over the same period was 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. The composition of the index's constituent stocks is adjusted according to the index's compilation rules. The back-tested historical performance does not predict the future performance of the index. The constituent stocks of the index shown in this article are for display purposes only, and descriptions of individual stocks do not constitute investment advice of any form, nor do they represent the holdings or trading dynamics of any fund managed by the fund manager. According to the fund manager's assessment, the risk level of the ChiNext AI ETF is R4-Medium to High Risk, suitable for proactive (C4) and above investors. The suitability matching opinion is subject to the sales institution's confirmation. 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. Investors must be responsible for their own independent investment decisions. In addition, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, nor do they bear any responsibility for direct or indirect losses arising from the use of the content of this article. Fund investment carries risks. The 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 should be cautious.
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