The first batch of public offering Q4 reports has been released, and top-performing fund managers believe that the transformation of industries driven by artificial intelligence is the core theme of the market

On January 9th, the first batch of public offerings for the 2025 fourth quarter reports was released.

Tongtai Fund disclosed the 2025 fourth quarter reports for two funds, namely the Tongtai Digital Economy Stock Fund and the Tongtai New Energy 1-Year Holding Stock Fund.

Generally speaking, the actively managed equity funds that first disclose periodic reports perform quite well. This time is no exception.

The Tongtai Digital Economy Stock Fund achieved an annual return of 85.98% for 2025, with a quarterly return of 3.49% in the fourth quarter, outperforming the benchmark by 14.8 percentage points.

As a fund manager with a background in chip research and development, Chen Zongchao expressed greater enthusiasm for the Tongtai Digital Economy Stock Fund in the fourth quarter report compared to the Tongtai New Energy 1-Year Holding Stock Fund, writing nearly 2,000 words for the former and about 700 words for the latter.

The industry transformation driven by artificial intelligence will remain the core mainline of structural opportunities

Looking back at 2025, Chen Zongchao summarized that technology stocks led by AI computing power continued to rise amid various concerns and doubts. Each time the market widely circulated bearish "logic" led to a drop in stock prices, it turned out to be a good buying point. Blue-chip stocks with continuously released performance were the mainline throughout the year, while breakthroughs in technology and customers in certain segments became stage dark horses. The Tongtai Digital Economy Stock Fund consistently adheres to technology stock investments, focusing on blue chips as the core position and foundation, while using gray chips to increase the fund's flexibility, and continuously tracking various sub-sectors of technology to maintain sensitivity to new technologies.

Chen Zongchao actively stated that wealth in life relies on the Kondratiev wave, and artificial intelligence has opened a new round of Kondratiev cycle. This time, the main battlefield of AI will return from the West to the land of China! At the beginning of 2025, the open-source of DeepSeek finally made global investors believe that China has rapidly caught up with and even surpassed the United States in the field of artificial intelligence, possessing the same "innovative spirit." Subsequently, the number of paid users and token volume of overseas AI companies grew rapidly month by month, and the AI industry finally formed a commercial closed loop from capital expenditure to revenue generation, dispelling the market's previous concerns that large model development only burns money without making profits. Another investment mainline is the Chinese semiconductor and domestic AI computing power industry, which is currently in a state of being fully prepared but lacking the favorable wind. The national support policies are the long-awaited favorable wind for the industry. He believes that technology stocks focused on the localization of AI hardware and AI computing power will be the investment mainline for the next 3 to 5 years, believing that "the future of the world lies in technology, and the future of technology lies in China."

Looking ahead to 2026, Chen Zongchao believes that the industry transformation driven by artificial intelligence will still be the core mainline of structural opportunities in the market.

Investment logic in four key directions for 2026

The key directions are:

1. The arms race of AI large models and computing power continues, and AI reasoning will also become a driving force for global computing power investment alongside AI large model training; and the self-developed AI computing power ASICs by major internet companies will become a new important growth point

2. As stated in the last quarterly report: "The domestic computing power industry chain will follow the overseas computing power industry and become the investment hotspot for the next quarter." Domestic AI computing power has begun to show some response by the end of this quarter, with high-end chip foundry capacity gradually increasing, and the adaptability of domestic computing power chips to domestic internet companies' large models is continuously enhancing. It is expected that this direction will continue to deliver positive results in the future, with the potential to achieve a breakthrough from 1 to N.

3. Semiconductor serves as the cornerstone of China's technology industry. Chinese chip manufacturing has made significant breakthroughs in high-end processes, storage, and other areas. Major domestic storage manufacturers will gradually go public, and some companies have already started to achieve substantial profits in the fourth quarter of 2025. Future capital expenditures are expected to exceed expectations, and 2026 will enter an investment cycle of capacity expansion.

4. AI applications may become a new breakout point: Progress in applications has consistently fallen short of expectations in recent years. With rapid advancements in domestic large models and a significant decrease in inference costs, this direction may truly usher in a year of explosive growth in 2026. At the same time, China has the most landing scenarios globally, with the core of the game, industrial, 3C, and robotics supply chains all located in China. Chinese companies are globally leading in commercial implementation. AI terminals, primarily consisting of headphones, smart toys, smartphones, and PCs, are expected to achieve a breakthrough from 1 to N. Global consumer electronics giants are positioning AI terminals as an important direction for future research and development, and as the manufacturing center of global consumer electronics, China is expected to fully enjoy this industry trend.

Focus on AI Holdings

The top ten heavy holdings form a clear map of the AI computing power industry chain.

The dual giants of optical modules occupy the top three positions, with Zhongji Xuchuang and Xinyi Sheng holding nearly 18% combined. These two companies are the core suppliers of optical modules for global AI data centers. Tianfu Communication (5.18%), as the leader in optical devices, completes the layout of the optical module industry chain.

The "twin stars" of domestic computing power chips, Haiguang Information and Cambrian, rank second and fourth, respectively, accounting for over 16% of net value. These are the core targets of the "domestic computing power industry chain" emphasized by fund managers.

Changchuan Technology and Jingce Electronics, as testing equipment suppliers, benefit from the domestic wafer fab expansion cycle. Purun Co., Ltd. is a rare target in storage chip design.

It is noteworthy that the appearance of XPeng-W and Jerry Holdings indicates the fund's flexible allocation beyond "pure technology."

Risk Warning and Disclaimer

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