Core Investment Logic - The demand explosion for AI computing power is a certain trend, with global AI computing entering a new phase characterized by super-scale clusters, high energy consumption, and high investment. Major companies like Nvidia and OpenAI are investing heavily, with Nvidia and OpenAI committing $100 billion to build a 10 GW AI data center, while domestic companies like Alibaba and Tencent are also making significant investments [1] - The historical opportunity for domestic substitution is accelerating due to escalating U.S. export controls. By 2024, China's chip market is expected to exceed 2.7 million units, with domestic AI chip shipments surpassing 820,000 units, accounting for over 30% of the market [1] - Strong policy support is acting as a catalyst, with national initiatives promoting AI integration across key sectors and local governments providing financial incentives to support enterprise development [1] Leading Companies and Emerging Players - Cambricon Technologies (688256) is a leading domestic AI chip company, reporting a significant revenue increase of 4230% year-on-year in Q1, with a net profit turning positive for the first time. The company has also received approval for a stock issuance to raise up to 3.985 billion yuan [1] - Haiguang Information (688041) is experiencing steady growth with a 45% year-on-year revenue increase in Q1. The planned acquisition of Zhongke Shuguang will create a complete ecosystem from chips to servers [1] - Huawei's Ascend ecosystem presents hidden investment opportunities, with its CloudMatrix384 super node outperforming Nvidia's H100 in certain scenarios, indicating significant advancements in domestic computing power [1] Key Technological Breakthroughs - Domestic GPUs are becoming competitive, with Huawei's CloudMatrix384 achieving a paradigm shift in architecture, outperforming Nvidia's H100 in model inference efficiency [1] - Significant revenue growth is expected for domestic integrated circuit companies, with Muxi Integrated Circuit projecting a 1354% increase in 2024 [1] - The development of software ecosystems by domestic companies is reducing user migration costs, with platforms like Huawei CANN and Cambricon BANG gaining traction [1] Investment Strategy - The current market adjustment has brought valuations back to reasonable levels, making it an opportune time for long-term investments. A phased accumulation strategy is recommended [1] - It is advised to allocate no more than 20% of total portfolio to domestic computing stocks, with 10% in leading stocks, 5% in growth stocks, and 5% in supporting companies [1] - Awareness of challenges such as technological iteration and ecosystem development is crucial, with strict stop-loss measures recommended [1] Future Outlook - The AI wave is expected to be significantly larger than the mobile internet era, with domestic computing chips poised for historic growth opportunities. Continuous technological breakthroughs and expanding application scenarios are likely to create numerous high-growth stocks [1]

Core Viewpoint - The domestic AI industry is experiencing significant growth, driven by strong policy support, technological advancements, and surging market demand, particularly highlighted by the performance of the domestic AI-focused ETF and its constituent stocks [1][4][5]. Group 1: Market Performance - The domestic AI-focused ETF (589520) saw an intraday price increase of nearly 3%, currently up 1.81%, marking a three-day consecutive rise [1]. - Key constituent stocks such as Chipone Technology surged over 15%, while Cambricon and Yuke Tech rose by more than 4% and 3% respectively [1]. - The ETF's trading threshold was reduced from approximately 120 yuan to about 60 yuan following a 1:2 share split, making it more accessible for investors [5]. Group 2: Industry Trends - Major global tech companies, including Oracle, Microsoft, Google, and Meta, are significantly increasing their capital expenditures on AI infrastructure, indicating a robust demand for high-end chips and related hardware [3]. - The Chinese government's policies are strongly supporting the integration of AI across key sectors, with initiatives like the "Artificial Intelligence+" action plan aiming for deep integration by 2027 [4]. Group 3: Technological Advancements - Domestic companies are making rapid technological breakthroughs, with Huawei and Alibaba Cloud demonstrating advancements in large-scale computing capabilities [4]. - The processing capacity in China has dramatically increased, with daily token processing volume soaring from 100 billion to 30 trillion within a year and a half [4]. Group 4: Investment Opportunities - The ETF is positioned to benefit from the ongoing domestic AI industry growth, with a focus on companies that are well-placed in the AI supply chain [6][7]. - The ETF's top ten holdings account for over 71.66% of its weight, with semiconductors being the largest sector, representing over 54.1% [7].