Likes ReceivedHigh "Light" GEM AI ETF Huabao (159363) Fund Manager: Valuation is Controllable
On the afternoon of May 13th, the computing power hardware sector saw a major surge. The leading optical module company, Tianfu Communication, rapidly surged over 10%, approaching its previous high. New E-ssen surged over 6%, and Zhongji Xuchuang rose over 3%. Among popular ETFs, the ChiNext Artificial Intelligence ETF Huabao (159363), which has over 50% exposure to CPO (Co-packaged Optics) optical modules and the highest concentration of the "Yi Zhong Tian" trio, soared 4.75%, achieving six consecutive days of gains and hitting a new all-time high. It is worth noting that since the ChiNext Artificial Intelligence ETF Huabao (159363)'s underlying index entered a super boom cycle on April 8, 2025, it has skyrocketed over 261%, significantly outperforming similar AI-themed indices.
As the rally continues to this day, many investors may wonder: Can it still be bought after such a rise? There's even a view: Are computing power optical modules getting cheaper the more they rise?
In response, Cao Xuchen, Fund Manager of the ChiNext Artificial Intelligence ETF Huabao (159363), stated: Firstly, after a broad-based rally, market differentiation will inevitably intensify. Secondly, the notion of "cheapening as it rises" doesn't actually exist. However, as the acceleration of the sector's prosperity outpaces the price gains, the sector's valuation level may decline.
Looking ahead, Cao Xuchen analyzed: In the short term, against the backdrop of such ample liquidity, the market may continue to see patterns like today (May 13th) - an opening dip followed by sidelined capital jumping back in, forming a final acceleration phase. This could last less than a week (depending on the outcome of Donald Trump's visit to China). After this short-term acceleration, the overall market may enter a phase of contention, requiring further observation. Companies with strong fundamentals may consolidate or even continue upward, while those with weak fundamentals may see significant pullbacks after catching up.
Cao Xuchen analyzed that technology assets are priced based on prosperity, the core of which is the industry's growth rate. Generally, a high-growth model involves product upgrades + volume increase (e.g., GPUs, optical modules), while an even faster model involves price increases (e.g., memory). Overall, valuations for the main AI tracks are generally controllable, and a bubble-like market has not yet arrived, thus requiring further observation.
Subsequently, as the market gradually moves towards valuation bubble territory, in the latter half of the cycle, the certainty of sector leaders will be better. Therefore, holding leaders in niche tracks might be the optimal choice currently. The leading optical module companies included in the ChiNext Artificial Intelligence ETF Huabao (159363) have seen substantial stock price gains at first glance, but valuations remain manageable. Hence, even if the market weakens later, their performance is expected to be relatively more stable.
Furthermore, since the beginning of this year, the market has frequently discussed "the end of computing power is electricity." Currently, capital participation in the power sector remains high. On May 13th, power leader Datang Power Generation hit the daily limit-up, securing six consecutive limit-up days, with multiple stocks surging over 6%. Among popular ETFs, the Power ETF Huabao (159146), which has an all-energy layout covering "wind, solar, hydro, thermal, and nuclear," surged nearly 3% intraday, approaching its previous high.
Cao Xuchen stated that electricity serves as a defensive play within AI computing power. The power sector and the ChiNext AI sector may exhibit a relay pattern, rising and falling alternately. From this perspective, popular ETFs represented by the ChiNext Artificial Intelligence ETF Huabao (159363) and the Power ETF Huabao (159146) deserve investors' continued high attention.
Note: As of May 12, 2026, the latest AUM of the ChiNext Artificial Intelligence ETF Huabao (159363) is 7.210 billion yuan, with an average daily turnover exceeding 800 million yuan over the past six months. Its size and turnover rank first among 26 ETFs tracking the ChiNext AI Index, STAR AI Index, and STAR ChiNext AI Index.
Special Reminder: Recent market volatility may be significant. Short-term gains/losses do not predict future performance. Investors must invest rationally based on their own financial situation and risk tolerance, paying high attention to position sizing and risk management.
Data Source: Shanghai & Shenzhen Stock Exchanges, Wind, etc.
ETF Fee Description: When investors subscribe or redeem fund units, subscription/redemption agents may charge a commission of up to 0.5%. Intraday trading fees are subject to the actual charges by securities firms. No sales service fee is charged.
Risk Disclosure: The ChiNext Artificial Intelligence ETF Huabao and its feeder fund passively track the ChiNext Artificial Intelligence Index. The base date of this index is December 28, 2018, and its release date is July 11, 2024. The annual performance of the ChiNext AI Index from 2021 to 2025 was: 17.57%, -34.52%, 47.83%, 38.44%, 106.35% respectively. The Power ETF Huabao passively tracks the CSI All Share Electric Power & Utilities Index. The base date of this index is December 31, 2004, and its release date is July 15, 2013. Index constituents are adjusted according to the index methodology. Its backtested historical performance does not predict future index performance. The index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading 动向 of any fund under the manager.The fund manager assesses the risk rating of the ChiNext Artificial Intelligence ETF Huabao as R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors; the fund manager assesses the risk rating of the Power ETF Huabao as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, expressions of any form, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of this content.Fund investment involves risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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