During Tuesday morning trading, the STAR Market chip sector delivered a robust performance, with CPU demand heating up both domestically and globally. Hygon Information Technology Co., Ltd. (STAR: 688041) climbed more than 8%, while Loongson Technology advanced over 7%. In the storage arena, CXMT's high-end DRAM volume production has ignited the supply chain, propelling Montage Technology Co.,Ltd. (STAR: 688008) to a gain of more than 10%.

The benchmark index for the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190)—which carries one of the lower fee structures in its category—once surged over 3% before settling to a current rise of 2.5%.

On the news front, Meta's AI agent, Muse, went viral shortly after its launch earlier this month, topping the free app charts on Apple's App Store and rekindling market enthusiasm for CPU technology. The proliferation of AI agents is expected to escalate inference and infrastructure workloads, which in turn bodes well for server CPU demand.

Additionally, on September 20, CXMT announced at the World Manufacturing Convention that its fifth-generation DRAM technology platform has entered mass production. The company also showcased a new 24GB high-capacity LPDDR5X product built on this platform. Following the earlier global debut and commercial rollout of its LPDDR6 memory, this development accelerates the pace of domestic substitution in the storage sector.

According to Omdia, the global DRAM market is projected to expand from $150.5 billion in 2025 to $763.8 billion by 2030, reflecting a compound annual growth rate of 38.39% over that period.

For investors, navigating the granular choices within the chip sector can be daunting. A more straightforward approach is to gain exposure through an index that covers the entire chip industry chain. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190) passively tracks the STAR Market Chip Index, offering coverage across the full semiconductor value chain. With heavy allocations in AI chips, memory, and semiconductor equipment and materials, the fund effectively captures the ongoing industrial trends driven by the continuous upgrades to AI computing infrastructure. It offers high offensive potential, featuring 20% price fluctuation limits for enhanced elasticity.

Investors outside the exchange can consider the feeder fund (code 021225) linked to this product.

Public data shows that the HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190) charges a management fee of 0.3%, a custodian fee of 0.08%, and a total fee of 0.38%, placing it among the lower-cost ETFs tracking the same underlying index.

Data sources: Shanghai and Shenzhen stock exchanges. ETF fee notes: When subscribing or redeeming fund shares, agencies may charge a commission of up to 0.5%, which includes fees collected by securities exchanges and registration institutions. Feeder fund fee notes: For the Huabao STAR Market Chip ETF Feeder Fund A, the front-end subscription fee is 1,000 yuan per transaction for amounts of 2 million yuan or more, 0.2% for amounts between 1 million and 2 million yuan, and 0.5% for amounts below 1 million yuan. The redemption fee is 1.5% for holdings of fewer than 7 days and 0% for holdings of 7 days or more. The Huabao STAR Market Chip ETF Feeder Fund C charges no subscription fee, has a redemption fee of 1.5% for holdings under 7 days and 0% for holdings of 7 days or more, and imposes a sales service fee of 0.2%.

Risk disclaimer: The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190) and its feeder fund passively track the STAR Market Chip Index, with a base date of December 31, 2019, and a release date of June 13, 2022. Over the past five full calendar years, the index posted returns of 6.87% in 2021, -33.69% in 2022, 7.26% in 2023, 34.52% in 2024, and 61.33% in 2025. The index's annualized volatility over the same periods was 34.32% in 2021, 36.60% in 2022, 28.64% in 2023, 44.67% in 2024, and 34.34% in 2025. Index constituent stocks are adjusted periodically according to the index methodology, and backtested historical performance does not guarantee future index results.

This product is issued and managed by Huabao Fund, and distribution institutions do not bear responsibility for the product's investment, redemption, or risk management. Investors should carefully review fund legal documents, including the Fund Contract, Prospectus, and Fund Product Summary, to understand the fund's risk-return profile and select a product aligned with their own risk tolerance. The fund manager has assessed this fund's risk rating as R4 (medium-high risk), suitable for investors with an appropriateness rating of C4 or above. Performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Past performance is not indicative of future results. Investing involves risk; caution is advised.

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A MACD golden cross signal has formed, and these stocks are showing strong upward momentum.