Chinese Investors Shift Focus from AI Chips to Power and Metals Amid Valuation Concerns
Chinese investors are pivoting from overheated AI chip stocks to sectors like power, metals, and infrastructure, driven by the growing demands of AI computing. Energy stocks have surged, with the sector index climbing 10% in October, outperforming the CSI 300 for the second consecutive month. Analysts predict a significant shift in AI spending, with one-third expected to FLOW into facilities and power infrastructure.
The Eastern Data, Western Computing initiative is fueling infrastructure growth, though transparency around long-term scheduling remains unclear. Rising electricity demand and massive investments in data centers are propelling utilities and storage companies into the spotlight. Bank of America highlights China's unique position to scale AI infrastructure, leveraging its abundant resources and strategic investments.
