On May 22, LUXSHARE-ICT and DSBJ rose over 4%, with Lanqi Technology and Industrial Fulian following suit, and the Consumer Electronics ETF Zhaoshang (159779) increased by over 1%. Since the beginning of this year, driven by the sustained high prosperity of AI computing infrastructure and the onset of the edge AI innovation cycle, the electronics sector has experienced a valuation reshaping. According to Choice, the Consumer Electronics (931494.CSI) has cumulatively risen 34% since the beginning of the year.
Industry analysis points out that three factors have driven the strength of the electronics sector:
First, the logic of simultaneous increase in volume and price along the supply chain has been reinforced: The explosion of AI computing is changing the mid-cycle supply-demand logic in semiconductors. In terms of storage, AI servers are expected to account for 50%-55% of global DRAM consumption. For passive components, the demand for MLCCs in AI servers is expected to grow by 87% and 88% in 2026 and 2027, respectively, coupled with a more than 50% increase in consumption per unit for AI PCs and AI smartphones, driving structural price increases for upstream components.
Second, the increase in computing power leasing prices confirms the explosion in demand: Overseas computing power leaders have comprehensively raised GPU leasing prices, and domestic cloud vendors have also synchronized the increase in prices for AI-related services. The demand for computing power is growing exponentially, with tech giants maintaining high capital expenditures, and core funds heavily investing in GPU server procurement and data center construction, confirming the industry's high certainty regarding long-term demand for AI computing power.
Then, the performance realization of core targets further strengthens the trend: The current rise of leading electronics companies has shifted from pure valuation expansion to a solid performance realization phase, with significant marginal changes in AI business for core targets. LUXSHARE-ICT's Q1 revenue for 2026 was 83.888 billion yuan (up 35.77% year-on-year), and it is expected that the profit share from the communication business will reach 30% by 2027. DSBJ's Q1 revenue for 2026 was 13.1 billion yuan (up 52.72% year-on-year), with net profit increasing by 143.5% year-on-year, and AI-related profit contributions exceeding 50%; driven by optical modules and AI PCBs, the optical chip production capacity is expected to expand to 330 million pieces in 2026/27. Industrial Fulian's Q1 AI server revenue increased by over 100% year-on-year, and CSP server revenue increased by over 4 times. The demand for GB300 continues to rise, with plans for the next-generation GPU racks and CPO switches to be mass-produced and shipped in Q3 2026.
CITIC Securities points out that it is optimistic about the layout opportunities for consumer electronics as a trend variety. CITIC believes that the transition of the AI market from the cloud side to the edge side is an important clue, which may bring broader opportunities including edge devices, computing power chips, and communication modules. Recently, OpenAI's layout for AI edge hardware may signify that major companies' AI competition is transitioning from a phase of competing for users through model applications to a phase of seizing edge entry points through user bases and striving to build ecological barriers.
Data shows that the Consumer Electronics ETF Zhaoshang (159779) tracks the CSI Consumer Electronics Theme Index (931494.CSI), selecting 50 listed company securities involved in component production, complete machine brand design, and production as index samples
The top ten weighted stocks are: LUXSHARE-ICT, Hon Hai Precision Industry, Semiconductor Manufacturing International Corporation, BOE Technology Group A, Montage Technology, OmniVision Technologies, DSBJ, Zhaoyi Innovation, Huagong Technology, and Chipone Technology

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LUXSHARE-ICT and DSBJ's stock prices rose nearly 5%, benefiting from the AI explosion and performance validation, with the consumer electronics index up 34% year-to-date. Analysis indicates that the surge in AI computing power demand is driving a revaluation of the electronics sector, with core companies significantly improving their performance. LUXSHARE-ICT's Q1 revenue increased by 35.77% year-on-year, while DSBJ's net profit surged by 143.5% year-on-year

同壁财经

LUXSHARE-ICT

DSBJ

Montage Technology

China Merchants CSI Consumer Electronic Theme ETF

OpenAI

SMIC

OmniVision Group

GIGADEVICE

HGTECH

VeriSilicon

MONTAGE TECH

SMIC HK SDR 5to1

OMNIVISION

LUXSHARE-ICT and DSBJ rose nearly 5%! Benefiting from the AI explosion and performance validation, the consumer electronics index has increased by 34% this year