Nvidia's investment boosts AI computing power expectations, Chip ETF E Fund rises 3.07%

As of 1:25 PM on April 1st, the Shanghai Composite Index increased by 1.45%, the Shenzhen Component Index rose by 1.59%, and the ChiNext Index gained 1.80%. In terms of ETFs, Chip ETF E Fund (516350) increased by 3.07%, with constituent stocks Xin Yuan Corp. (688521.SH), Jinghe Integrated (688249.SH), Cambricon (688256.SH), GigaDevice (603986.SH), Sino-Communication-U (688702.SH), Tianyue Advanced (688234.SH) rising over 5%, along with Sino (300661.SZ), HuaGuang Information (688041.SH), Zhongke Feice (688361.SH), Beijing Junzheng (300223.SZ) among others.

In news, on Tuesday local time, NVIDIA announced a $2 billion investment in U.S. semiconductor company Mower Technologies, integrating it into NVIDIA’s AI ecosystem, and the two will collaborate on silicon photonics technology. This event is seen as a significant advancement in AI computing infrastructure, boosting market expectations for the semiconductor supply chain, especially in AI computing power segments.

CICC Securities stated that the AI-driven acceleration of the semiconductor trillion-dollar era is taking shape, with domestic wafer expansion and advanced packaging opportunities. Under the influence of AI computing power and the global digital economy, the previously expected trillion-dollar semiconductor era by 2030 may arrive as early as late 2026. Storage is a core strategic resource of AI infrastructure, with current HBM capacity gaps still at 50% to 60%. As 2nm and below process nodes approach physical limits, the strategic position of advanced packaging becomes prominent. The dual drive of “advanced process + advanced packaging” promotes industry upgrades from a system perspective. Currently, advanced packaging has evolved into an atomic-level precision revolution, and AI-driven EDA tools are expected to significantly improve design productivity and shorten design cycles. Global wafer fabs are accelerating expansion, with China’s wafer capacity increasing from 4.9 million to 14.1 million wafers, nearly tripling, and the global market share rising from 20% to 32%. By 2028, 108 new wafer fabs will be built worldwide, with China accounting for 47. of them. In terms of equipment investment, mainland China has maintained the largest global equipment market size for six consecutive years since 2020, and its market share is expected to approach 30% by 2027.

Guolian Minsheng stated that breakthroughs in memory compression technology will drive long-term growth in storage market demand. The memory efficiency leap brought by TurboQuant may, in the long run, stimulate storage demand growth through multiple conduction logic, rather than just compressing market space. According to Jevons’ paradox in economics, this technology significantly reduces the computational power and memory thresholds for AI inference, potentially promoting AI capabilities across all scenarios, and could lead to a multiple-fold increase in global AI server deployments, thereby expanding overall storage demand. Additionally, memory compression technology may encourage developers to use compressed memory space to expand larger context windows, supporting scenarios like analysis of full codebases with millions of tokens and ultra-long video understanding. The new demand may consume the freed memory space.

Chip ETF E Fund (516350), tracking the CSI Chip Industry Index, is classified under the Shenwan Tier-3 industry categories, with digital chip design accounting for 51% of the index, potentially benefiting from the upward trend of domestic chip prosperity.