Three straightforward charts can help explain the investment outlook for AI applications. Chart one highlights how an AI-powered rendition of the classic Chinese novel Journey to the West could capture prime-time viewership. Chart two illustrates the momentum of overseas software growth alongside the delivery of results in the domestic market. Chart three zeroes in on three key exchange-traded fund sectors worth watching.

Investors can consider several thematic vehicles to gain exposure to these trends. The ChiNext Artificial Intelligence ETF Huabao (159363) focuses on optical modules and AI applications, providing a direct link to the infrastructure and software layers of the AI ecosystem. Meanwhile, the Fintech ETF Huabao (159851) is tailored for those interested in internet finance and AI-driven application, combining the growth of digital payments with intelligent solutions.

For those looking toward Hong Kong-listed leaders in AI application, the Hong Kong Internet ETF Huabao (513770) is designed to track the primary players in that space. The underlying message is clear: when targeting industry leaders, aligning with Huabao is a strategic choice. However, it is essential to remember that market conditions carry risks, and all investment decisions should be made with caution. Notably, the formation of a MACD golden cross signal has emerged, suggesting that some stocks are exhibiting promising upward momentum.