Today (October 16), the Sci-Tech Innovation AI ETF (589520), which focuses on the domestic AI industry chain, saw active trading in the morning session, peaking at a 0.82% rise before declining to close down 1.31%, with a total trading volume of 36.55 million yuan.
Among the constituents, Hehe Information rose by over 4%, Cambricon Technologies Corporation Limited increased by more than 2%, while Youkede, Daotong Technology, and Lanke Technology also closed in the green. Conversely, Zhongke Star Map fell over 4%, with Hengxuan Technology, Aobi Zhongguang, Lexin Technology, and Jingchen Shares each dropping over 3%, dragging down the index performance.
Notably, data from the Shanghai Stock Exchange indicates that the Sci-Tech Innovation AI ETF (589520) has attracted a total of 74.25 million yuan in inflows over the past five days, reflecting investor optimism towards the sector's market outlook and a gradual increase in allocations.
Recently, discussions have emerged about a potential shift in market trends. Analysts believe that the current phase may represent the first stage of a technology stock rally characterized by widespread surges in stock prices. Although there has been considerable appreciation, expectations remain partially unpriced. The most exciting aspects involve high-tech elements that might be included in the "14th Five-Year Plan," such as embodied intelligence and lighthouse factories. Once trade friction risks diminish, the market may still lean towards these types of assets. The logic behind domestic substitution has been reinforced during the trade disputes, serving as a primary driver for the strength of technology stocks.
Guotai Junan Securities maintains the view that technology could be the main narrative for the market. Since September 2024, the AI wave has opened up incremental spaces across various industries, establishing technology stocks as the primary focus of the current rally. In a rapidly rising market, the leading sectors typically align with the primary industries at that time, such as "Internet Plus" in early 2015 and new energy vehicles in 2021. Looking ahead to the next year, analysts remain optimistic about the tech main narrative, especially in AI applications.
In terms of news focus, significant attention is on the positive developments involving key stocks like Cambricon and Verisilicon: 1. Cambricon + SenseTime “Software-Hardware Integration,” domestic AI accelerates its breakthrough. On October 15, SenseTime announced a strategic cooperation agreement with Cambricon. Industry insiders point out that this collaboration comes at a crucial moment when the state is fervently promoting the "Artificial Intelligence +" strategy, marking a shift for the Chinese AI industry from the past pattern of solitary efforts to a new model of software-hardware collaborative development. 2. Verisilicon acquires ZD Semiconductor, positioning itself in the new AI visual processing sector. On October 15 evening, Verisilicon announced its intention to acquire 100% of ZD Semiconductor for a transaction amount not exceeding 950 million yuan. Following the transaction, ZD Semiconductor will be fully integrated into Verisilicon's consolidated financial statements. Analysts indicate that this acquisition is expected to raise Verisilicon's market share in AI ASICs to 18%, further solidifying its position as the "leading semiconductor IP company."
It is noteworthy that Verisilicon's Q3 earnings soared, projecting revenues of 1.284 billion yuan for the third quarter of 2025, achieving a historical single-quarter high, representing a quarter-on-quarter surge of 119.74% and a year-on-year increase of 78.77%. Shenwan Hongyuan pointed out that as a chip developer, Verisilicon has a complete IP layout and is expected to benefit significantly from the growing demand from various chip companies and terminal manufacturers for services ranging from chip design and customization to mass production.
CITIC Construction Investment Securities believes that the importance of technological self-reliance and independence has become more pronounced in the complex international landscape, accelerating the domesticization process of the AI industrial chain and promoting the establishment of a fully domestic AI industrial ecosystem to achieve secure and controllable development.
Huaxin Securities asserts that a new era of domestic AI chips has arrived, with the domestic AI industrial chain having achieved connectivity across the entire spectrum, from advanced upstream processes and packaging to accelerated iteration upgrades in models used by ByteDance, Alibaba, and Tencent, leading to a robust expectation for breakthroughs in domestic AI computational facilities.
**Light of Domestic Substitution, Self-Reliance and Strength in Sci-Tech Innovation** At this pivotal time, attention should be directed toward the Sci-Tech Innovation AI ETF (589520) and its associated funds (Link Fund A: 024560, Link Fund C: 024561) highlighting three main points: 1. Policy Ignition, AI Soars: Top-level documents have ignited interest, positioning AI as a potentially leading sector in this round of market dynamics. The integration of end and cloud is a fundamental trend in AI's growth, with constituents representing the companies generating the highest revenue or those strategically positioned to benefit from the accelerated AI-driven processes for end-side chips and software. 2. Domestic Replacement, Self-Controlled: Amidst technological frictions, the importance of information and industrial security has been underscored. As a core technology, achieving self-control in artificial intelligence is crucial. The indices involved focus on the domestic AI industrial chain, exhibiting significant characteristics of domestic substitution. 3. 20% High Volatility, Strong Offensive: Compared to directly investing in individual stocks on the Sci-Tech Innovation Board, ETFs allow lower-threshold investments and have a higher efficiency due to the 20% price fluctuation limit during market surges. The top ten holdings account for over 70% of the weight, with the leading sector, semiconductors, accounting for over half, indicating a concentrated portfolio with strong offensive properties.