AI Boom: Which Indices Are Set to Win?

Advertisements

As we dive deeper into the financial tides swept up by the surge in artificial intelligence (AI), led by the remarkable advancements of firms like DeepSeek, evaluating the index that has truly embraced this technological revolution becomes essential. To understand this landscape, we must take a step back and assess which specific AI-related indexes have exhibited superior performance. Perhaps the pressing question on everyone’s mind is whether the current leading indexes will maintain their upward trajectory through the remainder of the year.

In our analysis, we've selected a suite of relevant thematic industry indexes, including two Hong Kong stock indices, across a temporal framework that highlights two significant periods: from September 24 of last year to the present, and year-to-date metrics. The most striking observation is that all twelve selected indexes have consistently outperformed the Shenzhen-Hong Kong 300 index during this timeframe. This data glaringly illustrates the profound impact of the rising fervor for AI, demonstrating that market dynamics are more than just uniform trends but rather shifting narratives driven by technological advancements.

Zooming in on specifics, since September 24, the indexes that have thrived with increases of over 60% prominently include those tied to the computational power realms like big data, cloud computing, and semiconductors alongside the broader AI realm comprising robotics and newly emerging models such as those by DeepSeek. Notably, in recent months, the Hang Seng Technology Index has seen an even sharper ascent compared to its contemporaries. Analyzing the significance of these findings invites intrigue regarding the underlying logic propelling this growth.

Artificial Intelligence is inherently complex, comprising a vast and multifaceted industrial chain. As delineated by China's Ministry of Industry and Information Technology, the industry can be clarified into four primary segments: the foundational layer, the framework layer, the model layer, and the application layer. The model layer encompasses technologies akin to ChatGPT, China's Doubao, and the prevailing DeepSeek model—which can be likened to the 'brain' of AI technologies. Meanwhile, real-world applications thrive in embedded devices, such as smart assistants on our smartphones, autonomous driving innovations, and gaming enhancements. The foundational layer, which represents computational support, acts as the bedrock necessary for training and inference within AI models. It follows that advancements in AI cannot evade the necessity for robust computational infrastructures, where big data, cloud computing, and semiconductors play a central role.

In examining past technological market trends, it’s clear that these patterns typically reflect prevailing industry trajectories. Historical data highlights a tendency for capital to disregard conventional market highs amidst promising industry prospects, pushing investors to rotate their portfolios actively and redistributing capital from various sectors. This year, robotics applications are predicted to witness significant momentum in their industrial evolution. Last year alone marked a paradigm shift, as China's humanoid robot manufacturing saw output soar beyond 2,000 units. Current trends suggest that over 30 companies worldwide are expected to enter the commercial production phase of humanoid robots. It’s reminiscent of the explosive growth witnessed in the new energy vehicle sector just a few years ago—an industry that had long been maturing into the mainstream.

Yet, beyond focusing on specific sectors for investment opportunities, it’s imperative to recognize the Hong Kong stock market's distinctive role. Existing as a crucial bridge between China’s mainland and global capital markets, the Hong Kong market occupies a pivotal position within the financial system. Compared to the A-share market, Hong Kong exhibits heightened sensitivity to the inflow and outflow of overseas investment, providing a more immediate and intuitive reflection of external sentiments towards Chinese assets.

Reflecting on the landscape since 2025, it is notable that the Hang Seng Technology Index, alongside the Hang Seng Internet Index, has emerged as front-runners in the market. This robust performance is significantly attributable to emergent forces like DeepSeek, whose innovation and technological prowess invigorate related sectors while drawing attention from polyglot foreign investors. One could argue that the stellar performance of both indexes mirrors a growing confidence among overseas funds in China’s evolving market landscape.

However, caution should be exercised as we navigate the complexities of market dynamics in the short term. As the enthusiasm surrounding AI proliferates, investor sentiment is becoming increasingly complex, revealing a growing divide. On one side stands the remarkable pace of AI advancements, breeding enormous prospects for investment that lures in considerable capital; conversely, inflated market expectations and valuation pressures have kindled skepticism among certain investors, leading to short-term market fluctuations.

Yet, looking forward, it is evident that the value of Chinese assets and the narrative surrounding its advancements in AI remain in their nascent stages. With an expansive market scope, abundant talent, and a solid foundation for innovation, China is positioned favorably within the global economic and technological competition arena. As the nation undergoes continuous transformation and technology-driven growth, the attractiveness of Chinese assets will likely increase, with AI as a crucial driving force behind future economic and social evolution.

In light of the aforementioned analysis, investors should eschew short-term speculative tendencies and instead adopt a long-term perspective rooted in thorough research to identify promising investment opportunities. Emphasis should be placed on enterprises exhibiting core technologies and competitive advantages within emerging sectors like AI, as well as industries benefiting from structural economic adjustments and transitions. Through prudent asset allocation, we can not only capitalize on the dividends of economic and technological progress but also navigate market uncertainties while achieving stable investment returns. In a landscape brimming with both opportunities and challenges, our approach must be logical and forward-looking, aiming to seize investment prospects and cultivate the steady growth of our assets.