On August 19th, computing hardware stocks broadly declined, with optical module leaders sliding across the board. Zhongji Innolight dropped over 7%, Eoptolink Technology fell more than 6%, and Tianfu Communication lost over 2%. Among actively traded ETFs, the ChiNext AI ETF HuaBao (159363), which holds significant positions in CPO leaders, moved lower in intraday trading with real-time turnover surpassing 1 billion yuan. The recent volatility in the computing power sector has drawn attention, and Cao Xuchen, the fund manager of the ChiNext AI ETF HuaBao (159363), suggests this could be interpreted as a technical pullback, with the medium-to-long-term investment thesis remaining intact.

Cao Xuchen pointed out that the core driver of this rebound rally was not the previously active memory chip or price-hiking PCB sectors, but rather the M7 tech giants represented by Nvidia, Microsoft, and Amazon, along with promising AI software names like Palantir and MongoDB. While memory-related stocks performed strongly in the late stage of the rebound, their rapid ascent primarily reflected short-term speculative capital flows. Cao believes the current market displays clear characteristics of structural repair, favoring stocks with "volume growth," "low valuations," and "solid fundamentals" as offering sustainable opportunities. In contrast, price-hiking segments like memory and semiconductor equipment, despite notable short-term gains, are largely momentum-driven acceleration plays with relatively limited fundamental support.

From the overseas market perspective, recent data on Anthropic's annual recurring revenue and news of OpenAI pausing high-end computing capacity expansion have caused ripples across global markets. These two institutions account for roughly 30% of orders from cloud giants like Microsoft and Amazon, making them significant incremental customers for Nvidia. However, related cloud stocks traded steadily overnight, while memory makers and optical module companies saw steeper declines. The current correction mainly reflects profit-taking pressure on high-momentum stocks that had rallied excessively, rather than any deterioration in industry fundamentals.

From a technical standpoint, leading cloud providers and Nvidia continue to consolidate near record highs, while momentum-driven hardware names are under pressure below their 60-day moving averages. Cao Xuchen believes this divergence may signal a gradual weakening of momentum effects, potentially steering sustained capital flows toward fundamentally supported leaders. Translating this to the A-share market, Cao noted that the technology sector experienced a clear B-wave rebound in early August, with small and mid-cap stocks showing greater elasticity due to FCC-related matters affecting some companies. Looking ahead after the technical retracement, sub-sectors such as computing power chips, optical modules, and servers that combine "volume growth" and "low valuations" are poised to become primary sources of quality alpha, warranting attention to directions with solid fundamentals and strong earnings visibility.

For investors positioning along the high-optics theme, the ChiNext AI ETF HuaBao (159363) and its off-exchange feeder funds (Class A 023407, Class C 023408) focus on optical module CPO leaders while also covering AI applications. The underlying index holds approximately 40% combined weight in Zhongji Innolight, Eoptolink Technology, and Tianfu Communication, positioning it as a core vehicle for AI computing power exposure. The ChiNext AI ETF HuaBao (159363) currently manages approximately 7 billion yuan in assets, with average daily turnover exceeding 1 billion yuan over the past six months, leading all eight ETFs tracking the same index in both scale and liquidity.

Data sources include the Shanghai and Shenzhen stock exchanges, with Guozheng Index data as of August 18th showing the ChiNext AI Index components Eoptolink Technology, Zhongji Innolight, and Tianfu Communication at weights of 13.38%, 13.11%, and 10.7%, respectively. Investors should note that recent market volatility may be significant, and short-term gains or losses do not predict future performance. Please invest rationally based on your own capital situation and risk tolerance, with close attention to position sizing and risk management.

Regarding ETF fee structures: when subscribing or redeeming fund shares, authorized brokers may charge commissions of up to 0.5%. On-exchange trading fees are determined by actual securities company charges, with no sales service fee applied. For feeder fund fees: Class C of the ChiNext AI ETF feeder fund charges no subscription fee; redemption fees are 1.5% within 7 days and 0% for holdings of 7 days or more; the sales service fee is 0.3%. Class A charges a subscription fee of 1% for amounts below 1 million yuan, 0.6% for amounts between 1 million and 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan or above; redemption fees are 1.5% within 7 days and 0% for holdings of 7 days or more; no sales service fee applies.

Risk disclosure: The ChiNext AI ETF HuaBao passively tracks the ChiNext AI Index, which has a base date of December 28, 2018, and was published on 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 corresponding annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. Index constituent composition adjusts according to the index methodology, and backtested historical performance does not predict future index movement. Index constituents shown here are for illustrative purposes only, and individual stock descriptions do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund under the manager's umbrella. According to the fund manager's assessment, the ChiNext AI ETF HuaBao carries a risk rating of R4 (medium-to-high risk), suitable for aggressive (C4) and above investors; suitability matching opinions should refer to sales institutions. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors bear full responsibility for their own independent investment decisions. Additionally, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any form, nor do they assume liability for direct or indirect losses arising from the use of this content. Fund investing carries risks; past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Please invest in funds with caution.