--- title: "The STAR Chip Design ETF Tianhong (589070) underlying index fell over 1%, with valuations below the index level for more than 99% of the time since its release, presenting a good opportunity for allocation" type: "News" locale: "en" url: "https://longbridge.com/en/news/280560462.md" description: "The Tianhong SSE STAR Chip Design Thematic ETF (589070) saw its underlying index drop over 1%, with a transaction volume of CNY 23.8674 million and a turnover rate of 3.78%. The fund has reached a scale of CNY 638 million, showing significant growth year-to-date. The ETF focuses on cloud training chips, edge inference chips, and domestic GPUs, aligning with the growing demand for AI computing power. The current PE-TTM is 174.84 times, with valuations at a low level, providing a significant investment safety margin. The domestic demand for AI computing power has surged, storage chip prices have risen, and relevant technological breakthroughs are also advancing" datetime: "2026-03-26T03:23:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280560462.md) - [en](https://longbridge.com/en/news/280560462.md) - [zh-HK](https://longbridge.com/zh-HK/news/280560462.md) --- # The STAR Chip Design ETF Tianhong (589070) underlying index fell over 1%, with valuations below the index level for more than 99% of the time since its release, presenting a good opportunity for allocation On the market, both exchanges are experiencing a downward trend, with the chip design concept declining. In terms of related ETFs, the Tianhong SSE STAR Chip Design Thematic ETF (589070) saw its underlying index drop by 1.13% during the session, with a transaction volume of 23.8674 million yuan; the turnover rate reached 3.78%. Among the constituent stocks, Longxun Co., Ltd., Huizhiwei-U, and Puran Co., Ltd. also fell. The Tianhong SSE STAR Chip Design Thematic ETF (589070) has accumulated a net inflow of 88.5741 million yuan over the last 20 trading days. As of March 25, 2026, the latest scale of this fund is 638 million yuan, with a year-to-date growth of 638 million yuan, ranking first among similar funds. The Tianhong SSE STAR Chip Design Thematic ETF (589070) precisely targets three high-growth segments: cloud training chips, edge inference chips, and domestic GPUs, perfectly aligning with the industry trends of AI computing power explosion and domestic substitution. From the data, 68% of the AI chip design market growth rate and 12% of the domestic GPU market share provide solid performance support for the products; while a reasonable valuation of 40-45 times and the synergy advantages of the segments balance the high volatility risk of 35%-45%. For investors optimistic about the long-term development of the semiconductor design sector, the Tianhong SSE STAR Chip Design Thematic ETF (589070) is an efficient tool for capturing the dividends of niche segments. The current PE-TTM of the STAR Chip Index is 174.84 times, with valuations at a very low level since the index was launched, only slightly higher than 0.51% of the time since the index was released. The current valuation highlights cost-effectiveness, with a significant investment safety margin. On the news front, according to data from the China Development Forum 2026 annual meeting, domestic AI computing power demand is experiencing explosive growth, with the daily Token call volume exceeding 140 trillion, surging more than a thousand times within two years, directly driving the hard demand for underlying semiconductor chips. Meanwhile, there are reports of technological breakthroughs in the industry chain, with the country's first 8-inch silicon-based photonic chip production line officially starting in Suzhou, targeting the high-speed silicon photonic module market. Additionally, industry data shows that storage chip prices have risen sharply across the board, with the price of DDR5 products for servers increasing by 150% quarter-on-quarter in the first quarter, while Intel and AMD have also announced price increases for CPU products and extended delivery times. CITIC Securities points out that the STAR chip sector is entering a high prosperity window of volume and price resonance. Driven by the AI industry, demand is surging, and due to supply-demand imbalances, storage prices continue to rise, combined with the deepening logic of domestic substitution, the industry possesses three core investment logics: strong demand, rising prices, and performance realization. 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