Global investors turn to Chinese AI as Wall Street fears bubble

Al rebalance

- REUTERS

Global investors are increasing their wagers on Chinese artificial intelligence companies, betting on the next Deep-Seek and seeking to diversify, with concerns growing about a speculative bubble in the sector on Wall Street.

Demand for China’s Al companies is also being stimulated by Beijing’s push for tech independence.

China has fast-tracked blockbuster listings of chipmakers, notably Moore Threads, dubbed ‘China's Nvidia’, and MetaX, which both debuted this month.

Foreigners see China closing the tech gap with the US as Beijing steps up support for Al chipmakers, spurring bets on Chinese companies just as worries grow over lofty valuations on US-listed AI stocks. UK-based asset manager Ruffer, for example, said it has “deliberately limited exposure” to the Magnificent Seven - the US tech giants - and is looking to add positions in Alibaba for a bigger exposure to China's AI theme.