On Tuesday (December 2), the ChiNext AI sector closed slightly lower, with most constituent stocks in the red. However, leading CPO (Co-Packaged Optics) optical module stocks bucked the trend. Eoptolink Technology Inc.,Ltd. rose over 2%, marking its sixth consecutive gain, while TFC Optical Communication surged over 2% on heavy volume, and InnoLight Technology edged up 0.74%. On the downside, Accelink Technology and Hand Enterprise Solutions led losses, dropping over 4%, with Will Semiconductor, Chinasoft International, Kunlun Tech, HopeRun Software, and Aerospace Hi-Tech all declining more than 3%.

Among popular ETFs, the ChiNext AI ETF (159363), with over 56% exposure to CPO optical modules, dipped 0.33% intraday, demonstrating stronger resilience compared to peers in the same theme. Daily turnover exceeded 500 million yuan, reflecting active trading.

Morgan Stanley’s latest research report indicated that supply chain checks suggest a significant increase in production of Google’s TPUs (Tensor Processing Units). The 2027 TPU output forecast was revised upward by 67%, from approximately 3 million units to 5 million units, while the 2028 estimate surged 120%, from 3.2 million to 7 million units.

Zhongtai Securities noted that Alphabet has built a robust AI moat through its integrated ecosystem—spanning chips (TPUs), networking (OCS), models (Gemini), and applications (cloud computing/search/ads)—driving sustained capital expenditure growth. With upward revisions to TPU shipments, higher OCS adoption, and the rollout of 1.6T optical modules, CPO-related hardware suppliers stand to benefit from major growth opportunities.

Guosheng Securities’ research highlights that amid the high-growth cycle of computing power infrastructure, leading optical module manufacturers are accelerating capacity expansion in mainland China and Thailand. The sector is expected to see concentrated capacity releases in Q1 2026, propelling earnings into a new upward phase. The firm maintains a bullish outlook on computing power-related stocks, particularly optical module leaders.

Huaan Securities emphasized that AI industry trends remain robust, with short-term adjustments offering favorable entry points for the next phase. The sector’s core position as a primary market driver remains intact. Strategically, focus on computing power and AI applications, with the computing power infrastructure cycle confirmed as a new growth phase—still in early stages despite near-term consolidation.

To capture opportunities in computing power and AI applications, consider the first ChiNext AI ETF (159363) and its feeder funds (Class A: 023407; Class C: 023408). The underlying index heavily weights top optical module players like Eoptolink, InnoLight, and TFC (collectively dubbed “Yi-Zhong-Tian”), with optical exposure exceeding 56%. Over 70% of the portfolio targets computing power, while 20%+ focuses on AI applications, efficiently tracking AI themes (data as of November 30, 2025).

Risk Disclosure: The ChiNext AI ETF passively tracks the ChiNext AI Index (base date: December 28, 2018; launch date: July 11, 2024). The index’s annual returns from 2020–2024 were 20.1%, 17.57%, -34.52%, 47.83%, and 38.44%, respectively. Constituent adjustments follow index rules, and past performance does not guarantee future results. Stock mentions are illustrative and not investment advice or indicative of fund holdings. The fund is rated R4 (high risk) for aggressive (C4+) investors. Investment decisions carry inherent risks, and historical fund performance is no guarantee of future returns.