Global investors are increasingly reallocating capital toward Chinese artificial intelligence companies, seeking diversification as concerns mount over stretched valuations in U.S. AI stocks.
With the Nasdaq trading near 31x earnings, compared with ~24x for Hang Seng Tech, relative value is becoming harder to ignore. At the same time, Beijing’s push for technological self-reliance is accelerating capital formation across China’s AI and semiconductor ecosystem.
Recent blockbuster IPOs of chipmakers such as Moore Threads and MetaX — both posting triple-digit debut gains — underscore rising investor appetite for “China’s next DeepSeek.”
Large asset managers are adjusting positioning:
- Ruffer has deliberately reduced exposure to U.S. mega-cap tech
- Increased allocations to Alibaba, Baidu, and Tencent
- ETFs tracking Chinese tech and AI themes have seen sharp inflows in 2025
The investment case is not without risk. Some fund managers warn that valuation discipline is thin among newly listed AI chipmakers and that parts of the rally remain hype-driven.
Still, in a world shaped by geopolitics, supply-chain decoupling, and capital concentration, the message from global investors is clear:
AI opportunity is no longer a single-country trade.
Diversification is becoming strategy, not caution.