The investment climate surrounding the technology sector has captured the attention of numerous public mutual fund professionals, who view the field as ripe with opportunitiesKey areas of focus include humanoid robots and domestically-produced computing power chipsFollowing advancements with AI models like ChatGPT and Sora, the global discourse on artificial intelligence has accelerated, putting significant impetus on technology-driven investmentsDeepSeek, a recent entrant into the scene, has rapidly gained traction and emerged as a hot topic among both domestic and international investors, thus invigorating the tech market.

Data from Wind indicates that by February 21 of this year, notable indices tied to technology were experiencing extraordinary growthThe DeepSeek Index (8841905.WI), the Yu Tree Robotics Index (8841902.WI), the IDC Index (focused on computing power leasing) (8841297.WI), and the Cloud Computing Index (884091.WI) all recorded year-to-date gains exceeding 40%. Specifically, the indices noted a remarkable 73.86%, 48.24%, 42.06%, and 41.61% increase respectively, while the Shanghai Composite Index (000001.SH) and other major indices like the Shenzhen Composite Index (399001.SZ) managed gains of just 0.81%, 5.54%, 6.53%, and 1.11% in the same timeframe.

This meteoric rise in the tech sector has translated into substantial profits for funds that positioned themselves earlyAccording to recent figures, funds holding over 10% of their net asset value in technology stocks as of the fourth quarter of 2024 saw an average return of 13.86%, with statistics reflecting 1,003 products registering this year's performance.

The overt enthusiasm for technology as a leading force in the A-share market is underscored by a series of compelling factorsAs experts speculate on what lies ahead for this sector, common questions arise regarding potential movements, investment risks, and opportunitiesDialogues between research teams at investment platforms and several prominent public mutual funds have suggested a solid overall optimistic outlook while acknowledging inherent uncertainties tied to industry evolution and technology transformations.

Amid the thrilling fluctuations of the A-share market, the quickening pace of breakthroughs in artificial intelligence garnered widespread attention, resulting in robust performances across related indices

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With this competitive environment, it has been noted that the investment focus is shifting from raw computational power towards application and edge computing technologies, thereby reflecting a broader trend within the tech ecosystem.

The current information shared by Wind reveals that, out of 321 hot concept indices, 11 indices have shown over 30% growth year-to-date, with several of them directly linked to the technology domain, like the DeepSeek Index and humanoid robot indices, indicating a clear investor interestAgainst this backdrop, many wonder if this trend will continue and whether the tech sector will face any potential pullback.

In addressing these concerns, various investment companies have echoed sentiments of optimism for the future of the tech sectorFor example, Tang Neng, a fund manager at Yinhua Fund, expressed confidence that the Chinese economy would experience a cyclical recovery due to supportive policies, alongside flourishing artificial intelligence advancements that could pave the way for significant growth opportunitiesHe anticipates that this accumulation of innovation could herald a new upward trajectory within A-shares, particularly propelled by the specific contexts of AI application breakthroughs.

Furthermore, Wu Hao from Founder Fubon Fund cautioned that while technology stocks may experience short-term corrections due to high valuations and market sentiment fluctuations, the long-term growth potential remains robust, anchored on the continued evolution of AI technologies and their transition into commercial viability.

Investment strategies that embrace a long-term fundamental perspective are advisedAccording to Xiao Ruijin from Bosera Fund, typical investors should remain vigilant to various risks that may be harnessed during their engagement within the artificial intelligence sector, including the volatility of technology variances and the impact of industrial policies.

Despite these potential pitfalls, optimism remains prevalent, with Golden Eagle Fund signaling an overall bullish trend with a probability leaning towards upward market oscillations

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They foresee that any immediate pullbacks may offer advantageous purchasing opportunities, even as rapid rotations within the sub-sectors might signal the need for containment of drawdowns during market transitions.

As overall enthusiasm surges for tech transactions, inquiries regarding the levels of investment saturation and valuation remain paramountCaution is warranted; recent trading data highlights a significant influx into tech, with transactions nearing 44%, putting institutional insights on high alert within the sector.

While acknowledging that opportunities for appreciation may persist, Golden Eagle Fund encourages adopting a more measured approach regarding immediate entry into the marketVariances exist within particular industries, as highlighted by Wu Hao, noting that while data center valuations hold significant capacity for growth, risks of bubble formation loom heavily over sectors comprising office software and multimedia content networks, all while AI firms retain a more balanced outlook.

Investment choice becomes crucial when navigating the myriad of technology-focused mutual funds available to individual investorsIt’s recommended that investors carefully evaluate a fund manager's investment style, performance history, and overall capability to navigate the volatile tech landscapeSystematic investment techniques, such as dollar-cost averaging, may buffer against substantial drawdowns.

Looking ahead, there is an encouraging consensus regarding the focus on specific sub-fields within the technology realmInvestment managers have targeted various promising areas: localization of computing power chips, humanoid robotics, and mobile technology as vital sectors for future investment opportunities.

In particular, nuanced perspectives have emerged; while Wu Hao stresses that opportunities might concentrate on subdivided elements such as domestic chip technology or practical AI applications in fields like healthcare and education, Xiao Ruijin similarly advocates for a focus on advancements in hardware essential to end-user technologies, ranging from smart vehicles to humanoid robotics.

Further advocating for broader investment moves, Wanjia Fund emphasizes that the transfer from computing resources to practical applications is shaping the future of the sector, a transformation significantly accelerated by platforms such as DeepSeek

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