Investors appear increasingly bullish on China’s AI sector, even as bubble fears grip Wall Street.
Alibaba shares rose Tuesday after the Chinese e-commerce giant’s cloud computing division reported strong growth. And Beijing-based Moore Threads Technology, seen as a challenger to US chip champion Nvidia, is gearing up for a blockbuster IPO. China’s AI valuations still have room to grow, a Goldman Sachs strategist said: The country’s focus on real-world AI applications — differing from the US’ strategy of pouring capital into boosting computing power — reassures investors that China’s “AI monetization capability could be better.”
A top Asia money manager said this week she is increasing exposure to Chinese AI stocks and retreating from South Korea and Taiwan.