On Tuesday (November 10), optical modules and other computing hardware continued to recover. The underlying index of the Huabao ChiNext Artificial Intelligence ETF (159363), which focuses on optical module leaders, opened higher and surged over 4%, closing up 3.37%, drawing significant attention from capital allocators.

Among constituent stocks, optical module leaders took the lead in halting their decline and rebounding. Eoptolink and Zhongji Innolight both rebounded over 4%, while T&S Communications rose nearly 3%. Meanwhile, edge AI applications were also active, with vision chip concept stock Fullhan Micro hitting the 20CM daily limit and SoC chip maker SigmaStar surging over 14%.

Based on a comprehensive review of market information, the core driver of this rebound in optical module leaders may be the correction of expectation gaps. The previous decline was mainly attributed to two long-term concerns: first, the sustainability of North American capital expenditure after 2028, with the market worried that cloud service providers' capex growth could slow significantly, compounded by stricter energy, water usage, and environmental constraints on data centers after the midterm elections, as well as risks of delays in approval and construction cycles, compressing the "duration" of high growth; second, the pressure of 42.5 billion yuan in inventory, with the combined inventory of the three optical module leaders at the end of the third quarter exceeding their quarterly revenue, triggering impairment concerns.

However, recent multiple signals indicate that these concerns are clearly diverging from industry reality: guidance from Lumentum and Coherent continues to be revised upward, while the capex of TSMC and North American cloud service providers shows no inflection point, and the validation of prosperity continues. Institutions bluntly stated that "there is a misalignment between the sector's fundamentals and stock price expectations," and the earlier pessimistic pricing is facing correction. Soochow Securities noted that the current market concerns about the pace of data center construction should not be simply extrapolated as a downward revision of AI demand, as there is a misalignment between the sector's fundamentals and stock price expectations. Multiple indicators on the demand side continue to validate high prosperity, with no signs of weakening in cloud service providers' revenue guidance, capex investment, and AI application commercialization progress. Optical module manufacturers are also expected to sustain solid performance, and there may be a certain expectation gap between marginal catalysts on the industry side and current market expectations.

*To position in optical module leaders plus AI applications, investors may consider the Huabao ChiNext Artificial Intelligence ETF (159363) and its off-exchange feeder funds (Class A 023407, Class C 023408), focusing on optical module CPO leaders while also capturing AI applications. The underlying index has approximately 30% weight in "Zhongji Innolight + Eoptolink + T&S Communications," making it a core standard-bearer for AI computing power.

Data source: Shanghai and Shenzhen Stock Exchanges, Wind, etc. Note: As of October 31, 2026, according to the CNI Index, the top three constituents of the ChiNext Artificial Intelligence Index are Zhongji Innolight (11.49% weight), Eoptolink (9.08% weight), and T&S Communications (8.51% weight). Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

*Institutional views reference: Soochow Securities, "Overseas Computing Power Weekly Tracking: Long-Term AI Industry Trends Remain Supported, Bullish on Hardware Sector Recovery Opportunities." ETF fund fee disclosure: When investors subscribe to or redeem fund shares, the subscription/redemption agent may charge a commission of no more than 0.5%. On-exchange trading fees are subject to actual charges by the securities company, and no sales service fee is charged. Feeder fund fee disclosure: Huabao ChiNext Artificial Intelligence ETF Initiating Feeder C does not charge subscription fees; redemption fee is 1.5% within 7 days, 0% for 7 days (inclusive) and above; sales service fee is 0.3%. Huabao ChiNext Artificial Intelligence ETF Initiating Feeder A subscription fee is 1% for amounts below 1 million yuan, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1,000 yuan per transaction for 2 million yuan (inclusive) and above; redemption fee is 1.5% within 7 days, 0% for 7 days (inclusive) and above; no sales service fee is charged. According to the fund manager's assessment, the risk levels of Huabao ChiNext Artificial Intelligence ETF, Huabao Hong Kong Stock Connect Information Technology ETF, and Huabao STAR Chip ETF are R4-Medium-High Risk, suitable for investors with Aggressive (C4) rating and above. Suitability matching opinions should be based on the sales institution's assessment. Risk disclosure: Huabao ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and a publication 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, with annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1% over the same period. The index constituent composition is adjusted in accordance with the index compilation rules as appropriate, and its back-tested historical performance does not predict the index's future performance. The index constituent stocks mentioned in this article are for illustrative purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. 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, and investors are responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of the content herein. Fund investment involves risks. Past performance of a fund does not guarantee future results. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!