When the wave of AI is in full swing, the artificial intelligence industry index (931071) has become a beautiful landscape in the market. In the past 6 months, the index has unknowingly risen by 34.41% (WIND, as of 2023.5.31).
The CSI Artificial Intelligence Industry Index has risen in the past six months
Data source: WIND, statistical interval 2022.11.29-2023.5.31. The historical performance of the underlying index is not indicative of the future performance of the relevant type of fund.
From the perspective of index trends, the sector has experienced a wave of correction since mid-April due to a variety of factors. However, the artificial intelligence sector once again ushered in a small wave of outbreaks on May 30, receiving a large inflow of funds, and the data showed that the artificial intelligence sector had a one-day net active purchase amount (all orders) of 9.887 billion yuan, ranking No.5 among more than 200 WIND hot concept indexes.
Data source: WIND, as of May 30, 2023, only the top 10 WIND hot concept indices by net active buying (all orders) are listed.
So what exactly is it that has once again boosted the market's enthusiasm for the artificial intelligence sector?
01. NVIDIA has made a blockbuster technological breakthrough
On May 29, NVIDIA released the GH200 superchip and the new DGX GH200 artificial intelligence supercomputer equipped with 256 GH200 Grace Hopper super chips, with nearly 500 times the memory of the previous generation DGX A100 system.
Since OpenAI released ChatGPT, generative artificial intelligence has become the direction pursued by major technology companies, and it urgently needs strong computing power support. This "amplification move" of NVIDIA may be able to well undertake the demand brought by the explosion of artificial intelligence computing power.
And just last week, Nvidia just released a beautiful earnings report. According to financial report data, as of April 30 this year, NVIDIA achieved revenue of $7.19 billion in the first quarter of fiscal 2024, far exceeding market expectations of $6.5 billion.
02. Domestic AI computing power chips are favorable to heavy policies
On the news, on the afternoon of May 30, the Beijing Municipal Government officially released two major policy documents on artificial intelligence: the "Implementation Plan for Beijing to Accelerate the Construction of a Source of Artificial Intelligence Innovation with Global Influence (2023-2025)". It is mentioned that domestic artificial intelligence chips will achieve breakthroughs. Actively guide large model R&D enterprises to apply domestic artificial intelligence chips and accelerate the localization rate of artificial intelligence computing power supply. Artificial intelligence is increasingly supported by policies, and there may be new favorable policies next.
The superposition of the above two factors has undoubtedly enhanced investors' confidence in artificial intelligence.
The team of Zhang Qiyao of Industrial Securities Strategy pointed out that since the beginning of the year, the global wave of AI industry revolution has been set off, overseas NVIDIA, Google and other technology stocks have soared, and the domestic AI market has also become an important main line in the first half of the year. The overseas AI market has a significant mapping of A-shares, and it is currently in a new round of AI mainline market layout, focusing on the upstream computing power sector.
For ordinary investors, how to grasp the investment opportunities in the artificial intelligence sector?
Since the artificial intelligence industry has the characteristics of long industrial chain and wide coverage of enterprises, individual investors may need to have a certain amount of funds and trading experience if they want to accurately grasp the industry leader, and the investment threshold is high, so it is a good choice to invest through Huafu Artificial Intelligence ETF (515980).
According to exchange data, the fund has achieved steady growth this year, with a total of 680 million shares as of May 31, an increase of more than 70% from the beginning of the year.
Data source: iFind flush, statistical interval 2022.6.1-2023.5.31
Of course, many investors expressed confusion -
Artificial intelligence has risen a lot this year, is the valuation already on the high side?
The increase in industry volatility and the acceleration of the rotation of sub-sectors in the industry are we believe that this is a technical break brought about by the rapid growth of the artificial intelligence sector in the early stage and the crowding of phased transactions, which does not affect the long-term investment value of the sector. As the future performance of artificial intelligence enters the rising channel, the static valuation of the artificial intelligence sector will be digested, and the investment value of the sector will be more prominent.
In fact, the PE valuation we see is only calculated based on past earnings data. When the prosperity has increased significantly, future expectations have been reflected in the stock price in advance, but because the new financial report has not yet been released, the profit data is still past data, which may lead to "inflated high" PE data.
Regarding the valuation of the sector, Zhang Ya, fund manager of AI ETF (515980), explained: "At present, the AI industry is still in the first wave of valuation market, and the performance release lags behind the stock price performance, resulting in a phased rise in static valuation, which is a normal phenomenon. With the performance of subsequent related companies really landing, the valuation of the artificial intelligence sector will be gradually digested, if the consensus expected performance of listed companies in the artificial intelligence sector in 2023 is taken into account, the current valuation of the entire sector is not high. ”
The artificial intelligence sector fluctuates greatly, and some investors are more worried about this, what do you think of this?
Although the overall risk appetite of A-shares is still low, artificial intelligence is a relatively scarce industry in the market with technological breakthroughs and policy support. After the adjustment in the past month, the industry's margin of safety has improved, on the other hand, the performance and stock prices of overseas computing power companies have risen sharply, showing that the continuous advancement of artificial intelligence model development and commercialization is relatively smooth, and the investment value of the sector will be more prominent after the high-frequency data of the industry where ChatGPT-related applications land (such as the growth of orders of computing power companies, the growth of the number of users of application companies, the improvement of ARUP value, etc.) continue to change.
Note: The artificial intelligence industry is greatly affected by market demand and national policies, and the stock prices of relevant listed companies may fluctuate greatly, resulting in large fluctuations in the net value of the Fund and possible principal losses.
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Quam AI ETF is an equity ETF fund that adopts an indexed investment strategy and closely tracks the CSI Artificial Intelligence Industry Index, and invests in the constituent stocks and alternative constituent stocks of the underlying index with an asset ratio of not less than 90% of the net asset value of the fund and no less than 80% of the non-cash fund assets. The historical return of the CSI Artificial Intelligence Industry Index is not indicative of its future performance and does not constitute a guarantee of the performance of Quam AI ETF Fund, and investors are requested to pay attention to the risk of index fluctuations. The investment income of the fund will fluctuate due to the adjustment of the securities market, and a loss of principal may occur. The Fund may face various risks in the course of investment operation, please refer to the Prospectus for details. The fund manager has a risk rating of R4 for the above funds, which is suitable for investors with a risk tolerance level of C4 and above. Investors are requested to note that different fund sales institutions may have different risk ratings of the Fund, please purchase according to the risk assessment and matching results made by each sales institution, and read the Fund's "Fund Contract", "Prospectus", "Product Information Summary" and other legal documents in detail to understand the specific conditions of the Fund's risk-return characteristics, and make your own investment choices according to your own risk tolerance and other circumstances. The past performance of a fund is not indicative of its future performance and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund. This product is issued and managed by Quam Fund Management Co., Ltd., and the agency does not undertake the investment, payment and risk management responsibilities of the product.
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Zhang Ya, 18 years of experience in securities and 13 years of fund management experience. At present, he serves as Quam CSI 5-year Constant Duration CDB Index Fund (since 2019.1.28), Quam CSI Artificial Intelligence Industry ETF Fund (since 2019.12.24), Quam CSI Artificial Intelligence Industry ETF Feeder Fund (since 2020.4.23), Quam China Bond-Anhui Corporate Credit Bond Index Fund (since 2020.8.3), Quam Consumer Growth (since 2022.7.22), Fund manager of Quam CSI Science and Technology Innovation 50 Index Enhancement Fund (from August 31, 2022). Gao Zhe, 9 years of experience in securities industry and 5 years of fund management experience. At present, he is responsible for Quam CSI 100 Index (since 2018.2.23), CSI 5-year Constant Duration CDB Index (2019.1.28), Quam CSI Artificial Intelligence Industry ETF Fund (since 2019.12.24), Quam CSI Artificial Intelligence Industry ETF Feeder Fund (since 2020.4.23), Quam China Bond-Anhui Corporate Credit Bond Index Fund (since 2020.8.3), Fund manager of Quam CSI Pioneer Strategy ETF (from June 15, 2021), Quam CSI Rare Metals Thematic ETF (2021.8.11), Quam China Bond 1-3 Year CDB Bond Index (from September 15, 2021), Quam Consumer Growth (from 2022.7.22), Quam CSI Science and Technology Innovation 50 Index Enhancement Fund (from August 31, 2022). Li Xiaohua, 10 years of experience in securities industry and 2 years of experience in fund management. He joined Quam Fund Management Co., Ltd. in 2019 and currently serves as Quam CSI 100 Index (since 2021.5.7), Quam CSI Securities Pioneer Strategy ETF (since 2021.6.28), Quam CSI Rare Metals Thematic ETF (since 2021.8.11), Quam SME 100 Index Enhanced (since 2021.11.17), Quam Flexible Allocation Hybrid (since 2022.9.5), Fund manager of Quamnet CSI Artificial Intelligence Industry ETF Fund (from February 9, 2023), Quam CSI Artificial Intelligence Industry ETF Feeder Fund (from February 9, 2023), Quam CSI Science and Technology Innovation and Entrepreneurship 50 Index Enhancement Fund (from February 9, 2023) and Quam Yongxin Flexible Allocation Hybrid Fund (from 24.3.2023). (The above data is from the Fund's periodic report)