Optical modules lead the decline, while the ChiNext Artificial Intelligence ETF (159363) attracts funds against the trend! Zhongji Xuchuang's performance doubles, confirming high prosperity; institutions are optimistic about leading high-quality stocks.

On Tuesday (March 31), CPO computing hardware such as optical modules led the decline, with the ChiNext Artificial Intelligence index oscillating and pulling back throughout the day. Among them, Taichen Optoelectronics led the decline with over 8%, Liante Technology fell more than 6%, Beijing Junzheng, Guangku Technology, Tanfeng Communication, Xinyi Sheng, Zhongji Xuchuang and other stocks dropped over 3%.

In terms of popular ETFs, the Huabao (159363), the largest in scale and liquidity among similar artificial intelligence ETFs on the ChiNext, fluctuated and closed down 2.54%, with a trading volume of 539 million yuan. Funds showed a large net inflow against the market, with a single-day net subscription of 94M units, and nearly 140 million yuan added in the past three days.

Overall, the adjustment in the technology sector may be due to multiple emotional factors resonating—rising geopolitical risks increasing risk aversion, and uncertainty in Federal Reserve policies disrupting valuations of interest rate-sensitive assets. But from a fundamental perspective, the high prosperity logic of computing hardware like CPO remains intact.

On the news front, leading optical module manufacturer Zhongji Xuchuang disclosed an impressive annual report: by 2025, the company’s net profit attributable to shareholders will reach 10.8B yuan, a year-on-year increase of 108.78%. The company stated in the annual report that benefiting from strong downstream customer investments in computing infrastructure, high-speed optical module shipments have grown rapidly, with the proportion of high-rate products continuously increasing. Coupled with ongoing product scheme optimization and operational efficiency improvements, both revenue and net profit have achieved significant growth.

In a subsequent conference call, the company further forecasted 2026, believing that demand for optical modules will continue strongly, with 1.6T and 800G products becoming mainstays. Meanwhile, scale-up new scenarios are expected to generate more optical connection demand. Regarding upstream material shortages, the company has actively responded by increasing procurement and signing supply assurance agreements, confident in continuously improving delivery capacity.

As the first quarter concludes and the allocation window opens, Guolian Minsheng Securities recommends focusing on high-performing first-quarter reports. The firm pointed out that the AI technology revolution is driving a new wave of growth, with opportunities emerging in optical connections, domestic computing power, AI edge applications, and commercial aerospace. It suggests selecting leading companies with strong performance support, such as top optical module manufacturers.*

According to the latest research report from Guosheng Securities, entering 2026, as AI computing clusters evolve toward higher density, 1.6T optical modules will enter a scale-up year. Upstream core components (DSP, EML, silicon photonics capacity, and isolators) are facing a new round of tightening supply. Leading optical module manufacturers, with silicon photonics R&D and supply chain control capabilities, are continuing to expand their advantages during the 1.6T growth cycle.*

Seizing AI computing power opportunities, it is recommended to focus on the key layout of the ChiNext Artificial Intelligence ETF (159363) and off-exchange connections (Class A 023407, Class C 023408), which directly benefit from the explosive growth of AI technology commercialization. In terms of sectors, about 60% of the ChiNext AI ETF’s holdings are in computing power (CPO leaders and optical modules), and about 40% are in AI applications—these are not only core “computing power” but also true representatives of “AI applications.”

Data source: Shanghai and Shenzhen Stock Exchanges, etc. As of March 27, 2026, the latest scale of the Huabao ChiNext Artificial Intelligence ETF was 5.598 billion yuan, with an average daily trading volume of 739 million yuan over the past six months, ranking first among 26 ETFs tracking the ChiNext Artificial Intelligence Index, STAR AI Index, and STAR Innovation AI Index.

Institutional opinion reference sources: Guosheng Securities “Optical Modules: 1.6T Growth Imminent, Upstream Tightening Again”; Guolian Minsheng “Q1 2026 Performance Outlook for the Communications Industry”

ETF-related fee disclosures: When investors subscribe or redeem fund shares, the subscription/redemption agents may charge a commission of up to 0.5%. On-exchange trading fees are based on the actual charges of securities firms; no sales service fee is charged.

Related fees for the connection fund: The ChiNext Artificial Intelligence ETF launch-style connection C does not charge a subscription fee; redemption fee within 7 days is 1.5%, 7 days (inclusive) or more is 0%; sales service fee is 0.3%. The launch-style connection A of the ChiNext Artificial Intelligence ETF charges a subscription fee of 1% for amounts below 1 million yuan, 0.6% for 1-2 million yuan, and a flat 1,000 yuan for amounts above 2 million yuan; redemption fee within 7 days is 1.5%, 7 days (inclusive) or more is 0%; no sales service fee is charged.

Risk warning: The Huabao ChiNext Artificial Intelligence ETF passively tracks the ChiNext Artificial Intelligence Index, which has a base date of December 28, 2018, and was published on July 11, 2024. The annual gains and losses of the ChiNext AI Index from 2021 to 2025 are 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively. The index component stocks are adjusted according to the index rules; past backtest performance does not predict future performance. The index component stocks shown are for display only; descriptions of individual stocks do not constitute investment advice and do not reflect holdings or trading activities of any funds managed by the manager. The risk level of this fund, as assessed by the fund manager, is R4—medium-high risk, suitable for active investors (C4) and above. Suitability matching opinions are subject to the sales institution. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is for reference only; investors are responsible for their own investment decisions. The opinions, analyses, and forecasts in this article do not constitute investment advice and the fund manager is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results; performance of other funds managed by the fund manager does not guarantee the performance of any particular fund. Invest cautiously.