Technology leaders staged a dramatic V-shaped reversal in the afternoon session, with computing hardware stocks leading a collective rebound. Optical module and CPO (Co-Packaged Optics) plays spearheaded the charge, with Xinyisheng surging 10%, Zhongji Xunchuang gaining over 7%, and Tianfu Communication rising more than 5%. Fueled by earnings catalysts, the PCB sector erupted in a wave of limit-up gains, with Shengyi Technology and Huadian Co., Ltd. both hitting the daily upper limit. The semiconductor industry chain was also active, with Huayang Technology and Lanke Technology climbing over 5%.

Among popular ETFs, the ChiNext Artificial Intelligence ETF Huabao (159363), which focuses on leading optical module and CPO companies, saw a sharp vertical ascent in the afternoon, surging over 3%. The fund continued to see net subscriptions of 52 million units, following massive net inflows of 466 million yuan the previous day.

Additionally, the Technology ETF Huabao (515000), which combines attributes of "hard tech beta + high-quality leader alpha," reversed course to rally nearly 3% in the afternoon. The fund has attracted net inflows of 760 million yuan over the past 10 trading days.

Market Developments

On the news front, Meta continues to ramp up its investment in AI computing infrastructure. On July 13th, Meta announced it would expand its investment in the Hyperion data center project in Louisiana from $10 billion to $50 billion, boosting its computing capacity to 5 gigawatts (GW). Including subsequent chip procurement investments, the total lifecycle investment is projected to exceed $250 billion.

Analysis of Current Valuations

The current configuration of the communications sector may now be in a high value-for-money range. According to Guosheng Securities, after a degree of correction in computing hardware segments like optical modules, looking past short-term sentiment fog reveals that more positive and profound resonance in industrial fundamentals is occurring. They believe the present moment represents a crucial window period for positioning in leading optical communication companies, with a potential buying point for major optical plays arriving.

This assessment is primarily based on three underlying supports. First, the capital expenditures (CapEx) of major North American Cloud Service Providers (CSPs) have not peaked and are expected to continue rising. Second, the pricing logic for optical communication is healthier and more growth-oriented compared to traditional cyclical commodities. Third, within the broader technology sector, the short-to-medium-term earnings certainty of optical communication remains extremely strong, still acting as an absolute "mainstay" for the stabilization of the tech sector.

Investment Vehicles for Exposure

For sustained exposure to the optical theme, consider the ChiNext Artificial Intelligence ETF Huabao (159363) and its corresponding feeder funds (Class A: 023407, Class C: 023408). This ETF focuses on leading optical module and CPO companies, with its underlying index having an approximate 40% combined weighting in Zhongji Xunchuang, Xinyisheng, and Tianfu Communication, representing core leaders in AI computing power. Furthermore, the ChiNext Artificial Intelligence ETF Huabao (159363) recently reported assets under management exceeding 7.4 billion yuan, with an average daily turnover of over 1 billion yuan in the past six months, leading its peer group of eight ETFs tracking the same index in both size and liquidity.

For targeting tech leaders, consider the Technology ETF Huabao (515000) and its feeder funds (Feeder A: 007873, Feeder C: 007874). This ETF selects 50 listed companies from the technology sector based on large scale, high market share, strong growth capability, and significant R&D investment, collectively representing the core assets of A-share tech leaders. It combines the attributes of "hard tech beta" and "excess alpha from high-quality leaders." Its top ten holdings aggregate leading companies across various sub-sectors including optical modules, semiconductor equipment, memory chips, and PCB.