The AI application sector is experiencing a bottoming recovery, with multiple themed funds rising over 10% in a single day.

On the last trading day of July, the technology sector experienced a strong rebound, with a significant shift in the AI market. Funds flowed from upstream hardware such as light modules and storage chips to downstream applications like AI short dramas and large models. More than a dozen AI media-focused funds saw a single-day increase of over 10%. On one hand, funds in the AI application space rebounded in the short term, while on the other hand, AI hardware-themed funds that had previously led the market lagged significantly, with substantial reductions in year-to-date returns. In this volatile rotation, the profit and loss of fund investors became increasingly divergent.