Transformational Innovation Opportunities Artificial Intelligence

UBS maintains a constructive view on Chinese tech, favoring semiconductors and hardware equipment over internet platforms. This stance is driven by robust domestic capex expansion and government-led localization initiatives.

Key Takeaways

• 1.Chinese tech stocks are bifurcating, with capex-heavy internet platforms declining and semiconductors/hardware rising.
• 2.Investment in China's AI infrastructure is resilient, supported by government localization initiatives and a proposed CNY 2 trillion data center network investment.
• 3.UBS prefers Chinese semiconductors and equipment over internet hyperscalers due to margin pressures and competition.

Table of Contents

• AI quick pulse: Chinese tech pecking order, based on global AI dynamics
• Our view
• Global AI leaderboard
• Risks
• 12 month rating history
• Appendix

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