Early trading on the 14th saw a sharp pullback in computing power-related stocks, with optical modules leading the decline. Zhongji Innolight fell over 4%, while TFC Optical and Eoptolink dropped more than 3%. Among popular ETFs, the ChiNext Artificial Intelligence ETF (159363), heavily weighted in optical module leaders, slid over 3% intraday, breaching its 60-day moving average and leading the broader market decline. The ETF recorded real-time turnover exceeding 100 million yuan, with frequent premium trades and net subscriptions of 20 million units.

The sell-off followed a steep decline in U.S. tech giants, with Oracle plunging over 4% and NVIDIA down more than 3%. Investors continued offloading tech stocks, particularly AI-related sectors, amid valuation concerns. However, Mary Callahan Erdoes, CEO of J.P. Morgan Asset & Wealth Management, emphasized on Thursday that investors should focus on AI’s long-term opportunities rather than short-term bubble risks.

Looking ahead to 2026, CITIC SEC highlighted the diffusion of AI investment opportunities, recommending focus on computing power infrastructure and AI applications. Domestic computing power growth remains robust, combining earnings potential with investment certainty, potentially replicating the sustained bull run seen in U.S. tech since 2023. Key segments like liquid cooling, storage, power supplies, optical modules, PCBs, and quantum computing are poised for higher earnings elasticity. Model and application layers may also see localized breakthroughs, with internet giants and fast-adopting AI applications like AI advertising and AI agents standing out.

Citic Securities noted that rapid upgrades in GPUs and ASICs are driving computing power performance and data transmission demand, forecasting sustained high growth for 800G optical modules in 2026. The rollout of 1.6T modules is accelerating, while 3.2T R&D gains traction, reinforcing their bullish stance on optical module leaders.

For exposure to core computing power plays like optical modules, the ChiNext AI ETF (159363) and its feeder funds (Class A: 023407; Class C: 023408) offer concentrated allocations, with over 54% weight in optical module leaders and ~70% in computing power. The ETF, tracking the ChiNext AI Index, has grown to 3.5 billion yuan in assets, with average daily turnover of 700 million yuan in October—leading among seven peers.

*Data sources: SSE, SZSE. "First of its kind" refers to the inaugural ETF tracking the ChiNext AI Index.

*Risk disclosure: The ETF passively tracks the ChiNext AI Index (base date: 2018.12.28; launch: 2024.7.11). The index’s annual returns (2020–2024): 20.1%, 17.57%, -34.52%, 47.83%, 38.44%. Constituent adjustments follow index rules; past performance ≠ future results. Stock mentions are illustrative, not investment advice or fund holdings. The fund is rated R4 (high risk) for aggressive investors (C4+). Investment decisions carry inherent risks; no liability is assumed for direct/indirect losses from this content. Fund performance is not guaranteed.

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