In the past month, the automotive investment landscape has experienced a significant shift driven largely by the surge in artificial intelligence (AI) technologiesSmart driving and intelligent vehicles have emerged as standout themes, with several exchange-traded funds (ETFs) linked to intelligent driving technologies posting gains exceeding 20%. In contrast, ETFs focusing on new energy vehicles (NEVs) have lagged behind in performanceThis divergence highlights a fundamental change in investor sentiment as they increasingly place their bets on the future of automotive innovation.

Interviewees have indicated that intelligent driving is not just an optional upgrade; it's rapidly becoming a vital investment highlight within the AI sectorWhile advancements in smart driving technologies are indeed critical to the future of NEVs, it is paramount for investors to recognize the broader opportunities that exist throughout the entire automotive supply chainThis perspective challenges the conventional wisdom that often places exclusive focus on the electrification of vehicles.

A noteworthy trend is the surge of several ETFs exceeding 20% in gains.

Comparative analyses reveal that intelligent vehicle ETFs have significantly outperformed their NEV counterparts recentlyAccording to Wind data, as of February 11, the thematic ETFs associated with intelligent driving technologies clearly eclipsed those linked to NEVs over the past monthNotably, five intelligent vehicle and smart driving-focused ETFs have posted gains exceeding 20%, whereas the highest-performing NEV ETF barely managed to cross the 10% mark during the same timeframe.

It’s essential to note that there exists considerable overlap between the NEV and intelligent vehicle sectors, as most NEVs are racing towards incorporating smart driving functionalitiesAs this trend accelerates, it is becoming apparent that the core competitive edge for automotive manufacturers lies in their capability to innovate in the realm of intelligent driving systems

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However, the secondary market shows a marked distinction in the weightings and performances of indices related to intelligent vehicles versus those focused on NEVs.

A compelling example is seen in the comparison of Huaxia CSI Intelligent Vehicle ETF to Huaxia CSI New Energy Vehicle ETFThe official CSI Index Company website outlines that while the former tracks the CSI Intelligent Vehicle Theme Index, the latter monitors the CSI New Energy Vehicle IndexThe distribution of the top ten weighted stocks reveals significant differences; the weights for the Intelligent Vehicle Index emphasize semiconductors, electronics, and passenger vehicles along with their components, while the New Energy Vehicle Index is primarily concentrated on lithium batteries and non-ferrous metals sectors.

This categorization underscores that the Intelligent Vehicle Index leans more heavily towards sectors pertinent to AI applications, with semiconductors and electronics representing key areas for innovationIn contrast, the New Energy Vehicle Index focuses on upstream raw material supply and the manufacturing of essential components such as lithium, alongside battery suppliers.

According to the CSI Index Company data, as of February 10, the CSI Intelligent Vehicle Theme Index recorded a monthly increase of 22.98%, with a year-to-date rise of 14.85%. Conversely, the New Energy Vehicle Index saw a far lesser increase of 11.15% over the same month, translating to a 6.41% rise year-to-dateThe dramatic rise in the intelligent vehicle sector can largely be attributed to the ongoing "AI boom" which has propelled numerous semiconductor and electronics stocks upwards, leading to a collective surge across related sectors.

The scope of investment opportunities is extensive.

Nowadays, competition among automakers has evolved beyond merely utilizing battery life as a differentiator; the focus has shifted towards the implementation and advancement of intelligent strategies

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On February 10, BYD held a press conference announcing its "Heavenly Eyes," an advanced driving system covering its entire vehicle lineup, which far surpassed market expectationsIn a similar vein, Changan Automobile unveiled its "Beidou Tianshu 2.0" plan aimed announced its intention to pursue a nationwide intelligent driving initiative just the night prior.

There is a palpable wave of investment momentum directed towards intelligent driving as the AI revolution continues to gain tractionRecent reports from CITIC Construction indicate that the launch of the Deepseek large model has greatly bolstered China's investment axis in AI applications, particularly in robotics, automotive intelligent driving, and the low-altitude economy, which are expected to see significant benefitsThe report also forecasts 2025 as a critical juncture for the transformative leap in intelligent driving technology.

"Intelligent driving embodies the real-time decision-making, multi-modal perception, and big data training representative of AI technologies in application," remarked Han Wei, managing director of Taishi Investment, in an interviewHe emphasized the expectation that the current valuations in the intelligent driving sector likely anticipate forthcoming technological breakthroughs.

Despite the pivotal role of smart driving in the future of NEVs, analysts like Bi Mengning from Geshang Wealth Management, assert that the investment opportunities extend well beyond this singular focusNotably, there have been substantial advancements in intelligent driving technologies this year in China, highlighted by the capabilities exhibited in the "Heavenly Eyes" system, particularly in sensor fusion, algorithm optimization, and computational power enhancement.

Beyond intelligent driving, the entire supply chain for NEVs presents a wide array of investment possibilitiesPotential areas include upstream core components, midstream vehicle manufacturing, and downstream automotive services

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