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].