The fourth quarter of 2024 has witnessed a remarkable surge in actively managed equity funds, which have astutely capitalized on opportunities presented by emerging industriesThese funds have effectively outpaced passive investment approaches, demonstrating growth driven by sectors such as artificial intelligence (AI) and advanced manufacturingLeading examples include Silver Hua Digital Economy A, Debon Xinxing Value A, Taxin Xinxuan, and Yongying Advanced Manufacturing Intelligent Selection A, all of which have posted impressive quarterly returns exceeding 30%. The strategic focus on emerging sectors signals a significant shift within the investment landscape.

Prominent fund managers have noted that optical modules represent a substantial beneficiary of the global momentum toward AI development, and the potential for further performance in this arena has already been validated through previous results

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From an industry cycle perspective, there are indications that investments in AI terminals, AI applications, and the “AI+” concept could emerge as catalysts for the birth of future high-performing stocksAs computational power advances and the demand for AI inference grows stronger, new products and technology routes will continue to arise in the domestic market, nurturing a new generation of suppliers for key components like CPOs, power supplies, and liquid cooling systems.

In the competitive landscape of fund management, several funds have zeroed in on the “AI+” sectorNotably, Silver Hua Digital Economy A, managed by Wang Xiaochuan, achieved a striking return of 49.35%, leading the public fund market for the fourth quarterThis fund maintained a slightly elevated equity exposure of 89.62%, reflective of a continued commitment to vigorously adjusting its portfolio

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Wang strategically included high-visibility stocks like Xiaohongshu and Douyin Doubao while trailing investments into the technological frontier comprising educational platforms such as Dou Shen Education and enterprises including Zhaoyi Innovation and ZTE CorpThe fund also significantly increased its holdings in Damo Data and Jiuhao Technology, further enhancing its portfolio dynamics.

Similarly, the Debon Xinxing Value A fund, co-managed by Lu Yang and Lei Tao, has been deeply engaged in the AI computational power segment, showcasing a decisive increase in stakes in companies like Cambricon, Taisun Technology, Zhaojian Xuanchuan, and Xu Yi ShengWind data reveals that stocks such as Cambricon experienced a stunning growth rate, with its stock price doubling in the fourth quarter of 2024; Taisun Technology and Roberts Technology similarly experienced growth rates of over 90%.

Taxin Xinxuan, under the leadership of Dong Jizhou, has reflected a relatively stable asset composition, focusing on strategic allocations within the electronics, computer, and defense sectors

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In particular, the fund invested in areas encompassing semiconductor chips, high-speed transmission options, software applications, and military-use semiconductorsThe fourth quarter saw a notable enhancement in positions in firms like Foxit Software, Hongsoft Technology, and Hengxuan Technology, further aligning with market trends.

There are constant opportunities being unearthed within the sectorThe Yongying Advanced Manufacturing Intelligent Selection A and the AVIC Military-Civilian Integration Select Fund have notably achieved significant returns by zeroing in on humanoid robotics and the low-altitude economy, respectively, during the fourth quarterThe Yongying fund strategically focused on companies with competitive supply chain advantages in the humanoid robotics framework, constituting a broad array of components such as robot assemblies, lead screws, reducers, sensors, and motors

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Recent investments included companies like Beite Technology and Zhaowei Electromechanical, and these holdings joined the fund’s top ten positions.

On the other hand, the low-altitude economy segment, receiving considerable policy support, has been a top sub-sector of allocation for AVIC Military-Civilian Integration SelectThroughout the fourth quarter, the fund strategically bolstered its positions in firms such as Zhongke Xingtu, Shenzhen City Transport, and Lais Information Technologies, with new entrants being added to its top holdings, including Nair Radar.

Market performance indicators suggest that both Beite Technology and Zhaowei Electromechanical have recorded exponential growth in stock prices exceeding 60% by the end of the fourth quarter for Yongying Advanced Manufacturing Intelligent Selection A, while stocks from AVIC Military-Civilian Integration Select, including Zhongxin Haizhi and Sichuan Jiuzhou, rallied past 30% growth as well.

The “AI+” movement remains a pivotal excavation direction

In reflecting on investment strategies for 2025, many fund managers are in consensus that opportunities within the AI sector are poised for further expansion beyond current realizationsWang Xiaochuan mentioned that stocks benefiting from global AI infrastructure accumulation have prominently surged due to significant growth in the computational power supply chain from 2023 through 2024. This aligns with the prevailing understanding that sectors related to AI terminals and applications will be ripe for new investment opportunities.

Lu Yang and Lei Tao emphasize the role of optical modules, which have undeniably been beneficiaries of the burgeoning AI sectorTheir past performance has provided credible evidence of robust potentialAs computational capabilities elevate and the necessity for AI-driven analytics intensifies, new applications will continuously emergeThe domestic market positions itself favorably to foster a new generation of suppliers in critical technology domains, whether it be in CPO, power systems, or innovative cooling solutions.

Furthermore, Dong Jizhou articulated a vision where AI is transforming the fabric of industry paradigms

High-quality models with smaller parameters are now capable of substituting larger counterparts in various applications, accompanied by a substantial drop in invocation costs for similar parameter modelsThe foundational hardware ecosystem for these applications is now sufficiently matureIn the realm of high-speed computation, the focus has shifted significantly towards “storage” and “transmission” beyond mere “computational power.” Furthermore, AI applications observed across sectors have entered a commercial phase, embedding AI within enterprise systems such as CRM and ERP, as well as venturing into particular industry niches that have historically leveraged raw dataInnovations in hardware are also following suit, with AI integration becoming paramount across devices like smartphones, PCs, headphones, and eyewear, heralding a new era of technology engagement