Market rumors previously suggested that Alibaba's cloud division was purchasing an additional 150,000 Cambricon Siyuan 370 chips to meet its own needs. In response, Alibaba Cloud issued a denial: while Alibaba Cloud indeed supports domestic supply chains through its multi-chip cloud strategy, the rumors about Alibaba purchasing 150,000 Cambricon GPUs are false. Possibly affected by this news, Cambricon Technologies Corporation Limited fell today (September 1), currently down over 2%.
Notably, Goldman Sachs continues to raise Cambricon's target price! According to the latest news on September 1, Goldman Sachs stated that Cambricon's announced strong second-quarter performance maintains their positive outlook on the company, raising the 12-month target price by 14.7% to 2,104 yuan.
In fact, Cambricon's market capitalization is now approaching that of global chip giant Intel. Currently, Intel's market cap stands at $113.3 billion, equivalent to approximately 811.5 billion yuan. This means Cambricon would need less than two daily limit-up moves to surpass Intel's market capitalization.
Market analysts point out that behind Cambricon's rise and Moutai's retreat lies a deep structural transformation in China's economy: the growth engine is gradually shifting from reliance on traditional consumption to technological innovation. The fundamental driving force behind Cambricon's stock price surge stems from the combined push of three forces in China's economic transformation: policy guidance, capital support, and industrial upgrading. This is not merely a corporate growth story, but a wave of the times jointly written by national will, market mechanisms, and technological revolution.
**Why does the market generally believe the STAR Board may see a catch-up rally?**
1. **Previous underperformance creates catch-up potential**: CITIC Securities notes that since this round's low point (April 8), the STAR Board's overall performance has significantly lagged other major indices. For example, from April 1 to July 25, the Beijing Stock Exchange 50 and ChiNext indices both posted substantial gains, while the STAR 50's gains were relatively modest during the same period. This gives the STAR Board catch-up potential amid the overall market rally.
2. **Continued release of policy and institutional benefits**: CITIC Securities believes the STAR Board's "1+6" reforms have optimized the tiered mechanism and enhanced M&A activity, strengthening market confidence in the "hard technology" ecosystem. As policies supporting financial backing for technology innovation continue to advance, the STAR Board is expected to benefit from these policy tailwinds.
3. **High industry prosperity with improved earnings expectations**: First Shanghai Securities believes that under the grand narrative of major power technology competition, the urgency and importance of domestic computing power substitution continues to rise. Domestic computing demand is expected to grow rapidly in 2025, with market capacity potentially doubling. Against the backdrop of U.S. chip export restrictions, domestic computing chips are expected to capture larger market share, creating a hundred-billion-level market.
**Market outlook: Can AI continue rising?** Market analysts indicate that the major technology sector, led by AI, is likely to be the leading sector throughout this bull market cycle, with strong performers remaining strong. Unlike the 2015 "Internet+" rally, which was a tool for production relations reform, this round's AI represents a means of productivity that can penetrate across all industries, with its pull effect on various sectors continuing to be released. Overall, AI valuations in both the STAR Board and ChiNext sectors may still have room for improvement.
On the market front, the STAR AI ETF (589520), which focuses on the domestic AI industrial chain, was active in early trading today (September 1), with intraday prices rising over 1.7% to hit new highs since listing before falling below the waterline, currently down 0.93%. Is this a dip-buying opportunity for funds?
Funds have been rushing in earlier! Shanghai Stock Exchange data shows that the STAR AI ETF (589520) has attracted consecutive inflows over the past 5 days, totaling 159 million yuan! Looking at a longer timeframe, the ETF has accumulated 270 million yuan in inflows over the past 60 days, with a net flow rate of 112.93%.
**Domestic Substitution Pioneer, STAR Self-Reliance and Self-Strengthening**
From the current perspective, three key highlights of the STAR AI ETF (589520) and its feeder funds (Feeder A: 024560, Feeder C: 024561):
1. **Policy ignition, AI takeoff**: Top-level documents have ignited the sector, with AI potentially becoming the leading sector throughout this market cycle. Edge-cloud integration is a core trend in AI development, with constituent stocks being companies with the largest revenues or best positioning in their respective segments, benefiting from accelerated AI adoption in edge-side chips/software.
2. **Domestic substitution, autonomous control**: Against the backdrop of technology friction, the importance of information security and industrial security is prominent. As a core technology, achieving autonomous control in artificial intelligence is crucial. The target index focuses on the domestic AI industrial chain with strong domestic substitution characteristics.
3. **20% high elasticity, strong offensive capability**: Compared to directly investing in individual STAR Board stocks, ETFs enable low-threshold deployment with 20% daily trading limits, offering higher efficiency during market breakouts. The top ten holdings account for over 60% of the weight, with semiconductors as the largest sector weighting nearly half, demonstrating high concentration and strong offensive capability.
Chart: Top Ten Holdings of STAR AI ETF (589520) as of Mid-2025 Report
Note: As of July 31, 2025, the top ten holdings of the STAR AI Index accounted for 67.36% of the weight; according to SW Level-2 industry classification, semiconductors are the largest weighted sector at 47.8%.
Risk Warning: The STAR AI ETF and its feeder funds passively track the SSE STAR Board Artificial Intelligence Index. The index base date is December 30, 2022, published on July 25, 2024. Index constituent stock composition is adjusted timely according to index compilation rules, and historical backtesting performance does not predict future index performance. Individual stocks and index constituents mentioned in this article are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent position information and trading activities of any fund under management. The fund manager assesses the STAR AI ETF as R4-medium-high risk, suitable for aggressive (C4) and above investors. Appropriateness matching opinions should be based on sales institutions. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must take responsibility for any autonomous investment decisions. Additionally, any views, analyses, and predictions in this article do not constitute investment advice to readers in any form, nor do we assume any responsibility for direct or indirect losses caused by using this article's content. Fund investment involves risks. Past performance of funds does not represent future performance. Performance of other funds managed by the fund manager does not guarantee fund performance. Fund investment should be conducted with caution.