In early trading on May 11th, domestic chip stocks launched another offensive. Montage Technology (688008) surged over 16% at one point, hitting a new all-time high, and is currently up more than 13%. CSSC Advanced Gas rose over 12%, also reaching a new high. Hygon Information and BIWIN Storage both gained over 4%, while Hua Hong Company rose more than 3%. The Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190), which provides a comprehensive "all-in" portfolio of the chip industry, saw its intraday price jump up to 4%, currently trading 3.06% higher.

Driven by the explosive growth of generative AI, the demand for memory from AI servers is experiencing exponential growth. According to data from DRAMexchange, the spot price for DRAM (DDR3 4GB 512Mx8, 1600MHz) surged over 410% in 2025 and has continued to climb nearly 120% since the beginning of 2026. Currently, memory chip prices have reached record highs.

A CITIC Securities research report points out that memory prices have been raised again since March, proving that the industry's prosperity remains high. The institution judges that the supply shortage will persist until 2027, with price increases continuing throughout 2026, firmly optimistic about the storage industry trend.

China Securities (CSC) stated that in 2026, competition in domestic computing power has officially moved from "single-card competition" to "system-level competition." As the performance of domestic solutions continues to improve, domestic computing power chip companies are gradually entering a period of performance realization. Domestic GPU performance surged in Q1 2025-2026, with companies like Cambricon, MetaX, Moore Threads, Enflame, and Biren Technology achieving quarter-on-quarter high growth in revenue and profit. Restricted imports of foreign GPUs, surging demand for domestic GPUs, and realized performance benefit the domestic computing power industry chain. It is expected that domestic server solutions, memory, semiconductor equipment/materials, and other supporting hardware will also see explosive growth.

To position for the chip industry's "super cycle," high-volatility growth stocks are a preferred choice. Public information shows that the Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190) and its feeder funds (Class A: 021224, Class C: 021225) passively track the SSE Sci-Tech Innovation Board Chip Index. While providing balanced exposure and full-chain coverage of the chip industry, they have a weight exceeding 90% in core areas such as integrated circuits and semiconductor equipment, representing high hard-tech content and strong technical barriers.

Data source: SSE, SZSE, etc. ETF fee note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Feeder fund fee note: For Huabao Shanghai Sci-Tech Innovation Board Chip ETF Feeder Fund A, the front-end subscription fee is 0.5% for subscription amounts below 1 million RMB, 0.2% for amounts between 1 million (inclusive) and 2 million RMB, and a flat fee of 1,000 RMB per transaction for amounts of 2 million RMB (inclusive) and above. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more. Huabao Shanghai Sci-Tech Innovation Board Chip ETF Feeder Fund C charges no subscription fee. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days (inclusive) or more; a sales service fee of 0.2% applies. Risk Disclosure: The Huabao Sci-Tech Innovation Chip ETF passively tracks the SSE Sci-Tech Innovation Board Chip Index. The base date for this index is December 31, 2019, and its release date is June 13, 2022. This product is issued and managed by Huabao Fund. Selling agents do not bear the investment, payment, and risk management responsibilities for the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other fund legal documents to understand the fund's risk-return characteristics and choose a product suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 - Medium-High Risk, suitable for investors with a suitability rating of C4 and above. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund is not indicative of its future performance. Funds carry risks, and investment requires caution! Selling institutions (including the fund manager's direct sales channels and other selling institutions) assess the risk of this fund according to relevant laws and regulations. Investors should pay attention to the suitability opinions issued by the fund manager in a timely manner. Suitability opinions from various selling institutions may not necessarily be consistent, and the fund product risk rating results issued by fund selling institutions shall not be lower than the risk rating results determined by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and, based on their own investment objectives, horizon, experience, and risk tolerance, carefully select fund products and bear the risks themselves. The China Securities Regulatory Commission's registration of this fund does not indicate its substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Funds carry risks, and investment requires caution.

A MACD golden cross signal has formed, and these stocks are performing well!