Today (September 1), the Science and Technology Innovation AI ETF (589520), which focuses on domestic AI industry chains, was active in early trading. The intraday price surged over 1.7% to reach a new high since listing, before falling below the waterline and currently down 1.32%. Are funds taking advantage of the decline to position themselves?
Funds have been rushing in previously! Shanghai Stock Exchange data shows that the Science and Technology Innovation AI ETF (589520) has attracted consecutive inflows for 5 days, totaling 159 million yuan! Over a longer timeframe, the ETF has accumulated 270 million yuan in net inflows over the past 60 days, with a net flow rate of 112.93%.
Among constituent stocks, Cambricon Technologies Corporation Limited led the decline, falling over 6%, while Aerospatiale Hongtu dropped more than 4%, and Foxit Software and Fudan Microelectronics fell over 3%. On the positive side, Yuntian Lifei surged over 5%, CloudWalk Technology rose more than 4%, and ArcSoft gained over 2%, leading the gainers.
Why did the Science and Technology Innovation AI sector decline today? There are likely two reasons: ① Weighted stock decline: The largest weighted stock - Cambricon Technologies Corporation Limited issued a stock trading risk warning announcement on the Shanghai Stock Exchange on the evening of August 28. Leading stocks like Cambricon have led declines over the past two days, dragging down index performance; ② Short-term technical adjustment: The index experienced significant gains in August, accumulating substantial profit-taking positions, with some funds choosing to realize profits.
Notably, Goldman Sachs continues to raise Cambricon's target price! According to the latest news on September 1, Goldman Sachs stated that Cambricon's announced strong Q2 performance maintains their positive outlook on the company, raising the 12-month target price by 14.7% to 2,104 yuan.
Currently, Cambricon's market capitalization is approaching that of global chip giant Intel. Intel's current market cap stands at $113.3 billion, equivalent to approximately 811.5 billion yuan. This means Cambricon's market cap could surpass Intel with less than two limit-up trading sessions.
Market analysts point out that behind Cambricon's "new king's coronation" and Moutai's displacement lies a deep structural transformation of China's economy: the growth engine is gradually shifting from traditional consumption dependence to technological innovation. Cambricon's stock price explosion fundamentally stems from the combined driving forces of policy guidance, capital support, and industrial upgrading in China's economic transformation. This is not just one company's growth story, but a generational wave jointly orchestrated by national will, market mechanisms, and technological revolution.
What's the outlook? Can AI continue to rise? Market analysts indicate that the major technology industry led by AI will likely be the leading sector throughout this bull market cycle, with the strong getting stronger. Unlike the 2015 "Internet+" rally, "Internet+" was a tool for production relationship reform, while this round of AI is a means of productivity that can penetrate across all industries, with its driving effects on various sectors continuing to be released. Overall, AI valuations in both the STAR Market and ChiNext boards may still have room for improvement.
First Shanghai Securities believes that under the grand narrative of major power technology competition, the urgency and importance of domestic computing power substitution continue to rise. Domestic computing power demand is expected to grow rapidly in 2025, with market capacity potentially doubling. Against the backdrop of US chip export restrictions, domestic computing power chips are expected to capture larger market share, creating a hundred-billion-level market.
**Domestic Substitution Light, Science and Technology Innovation Self-Reliance**
Standing at the current juncture, focus on three highlights of the Science and Technology Innovation AI ETF (589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561):
1. Policy ignition, AI takeoff: Top-level documents have triggered explosive growth, with AI potentially becoming the leading sector throughout this market cycle. Edge-cloud integration is a core trend in AI development, with constituent stocks being companies with the largest revenues or best positioning in subdivided segments, benefiting from accelerated AI transformation in edge-side chips/software.
2. Domestic substitution, autonomous control: Under the backdrop of technology friction, the importance of information security and industrial security is highlighted. As a core technology, achieving autonomous control in artificial intelligence is crucial. The target index focuses on domestic AI industry chains with strong domestic substitution characteristics.
3. 20% high elasticity, strong offensive capability: Compared to direct investment in STAR Market individual stocks, ETFs enable low-threshold positioning with 20% daily price limits, offering higher efficiency during market explosions. The top ten holdings account for over 60% of weight, with semiconductors as the largest weighted industry at nearly half, demonstrating high concentration and strong offensive capability.
Chart: Science and Technology Innovation AI ETF (589520) Top Ten Weighted Stocks in Q2 Fund Report
Note: As of July 31, 2025, the top ten weighted stocks of the Science and Technology Innovation AI Index account for 67.36% of weight; according to SW Level 2 industry classification, semiconductors are the largest weighted industry with 47.8% industry weight.
Risk Warning: The Science and Technology Innovation AI ETF and its feeder funds passively track the SSE STAR Market Artificial Intelligence Index. This index has a base date of December 30, 2022, and was released on July 25, 2024. Index constituent stocks are adjusted timely according to index compilation rules, and historical backtesting performance does not indicate future index performance. Individual stocks and index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute any form of investment advice and do not represent holding information or trading movements of any fund under management. The fund manager assesses the Science and Technology Innovation AI ETF risk level as R4-medium-high risk, suitable for aggressive (C4) and above investors. Please refer to sales institutions for appropriateness matching opinions. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any independent investment decisions. Additionally, any views, analyses, and predictions in this article do not constitute investment advice to readers in any form, nor do they bear any responsibility for direct or indirect losses caused by using this article's content. Fund investment involves risks. Past fund performance does not represent future performance. Performance of other funds managed by the fund manager does not guarantee fund performance. Fund investment requires caution.
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