Since 2025, the electronics sector has significantly outperformed the broader market. This rally is not driven by mere market sentiment but by tangible computing power and capital expenditures. Google, Meta, Microsoft, and Amazon collectively spent nearly $100 billion in Q3 2025, marking a year-over-year increase of approximately 70%. Domestic giants like Alibaba, Baidu, and Tencent have also substantially increased investments in AI infrastructure. The "high-growth momentum" in the electronics sector stems from this wave of hardware procurement and investment plans.
In the PCB (printed circuit board) segment, the surge in computing power has directly boosted demand for high-end PCBs. AI servers now require additional GPU and switch boards alongside traditional motherboards and backplanes, driving demand for larger, multi-layered, high-speed, and high-density PCBs.
Prismark forecasts the global PCB market to approach $95 billion by 2029, with the AI and high-performance computing segment expected to grow at a CAGR exceeding 20% from 2024 to 2029.
Financially, AI PCB companies have already demonstrated strong performance. In Q3 2025, firms like Shennan Circuits, Victory Giant Technology, and Shengyi Technology reported revenue and net profit growth ranging from double digits to multiples, reflecting rapid order fulfillment for AI servers, switches, and optical modules.
CITIC Securities notes that NVIDIA's FY26Q3 results and FY26Q4 guidance exceeded expectations, while Google's Gemini 3 showcased significant performance improvements. These developments underscore the accelerating growth of the AI industry, with PCBs emerging as a key beneficiary due to their alignment with AI chip upgrades.
Looking ahead, Huachuang Securities believes AI is reshaping the electronics supply chain, creating new growth opportunities driven by computing power demand. The sector remains in an innovation phase, with future growth expected from breakthroughs in terminal innovation, earnings realization, and profit surges.
In today's trading (November 24), PCB stocks showed resilience, with Avary Holding and Shennan Circuits rising over 1%, while Shengyi Technology also edged higher. Semiconductor equipment leader NAURA led gains with a 3% increase, followed by AMEC's 1% uptick.
Among ETFs, the Electronic ETF (515260), which tracks core electronics leaders, dipped 0.83% intraday. However, it attracted inflows of 11.2 million yuan over the past three days, signaling investor confidence in the sector's outlook.
For investors, the Electronic ETF (515260) and its linked funds (Class A: 012550 / Class C: 012551) passively track the Electronic 50 Index, featuring three key characteristics: 1. **Innovation-Driven**: The index focuses on semiconductors and consumer electronics, covering PCB, AI chips, automotive electronics, and 5G, with top holdings including Luxshare Precision, SMIC, Cambricon, and Foxconn Industrial Internet. 2. **Apple Supply Chain Boost**: With iPhone 17 driving strong sales, Apple's supply chain is poised for outperformance. As of October, Apple-related stocks accounted for 44.63% of the ETF's holdings. 3. **Policy and AI Tailwinds**: Domestic semiconductor self-sufficiency efforts and AI-driven consumer electronics innovation, supported by national policies, position the sector for growth.
**Risk Disclosure**: The Electronic ETF tracks the CSI Electronic 50 Index (base date: 2008.12.31, launched: 2009.7.22). Historical performance does not guarantee future results. Individual stock mentions are for illustrative purposes only and do not constitute investment advice or reflect fund holdings. The fund carries an R3-medium risk rating, suitable for balanced (C3) or higher-risk investors. Investment decisions should be made independently, and past performance is not indicative of future returns.