The frenzy over artificial intelligence is sending technology-company valuations through the roof in the U.S. and Asian markets, but China still offers some relative bargains. Stock markets feature a parallel universe of Chinese technology champions, including an e-commerce giant, a search-engine and robotaxi company, and a chip manufacturer.
While some smaller Chinese tech companies have experienced bubbly surges this year, shares in larger companies that are investing heavily in AI often cost less per dollar of revenue or profit than their famous counterparts abroad.
Beijing is backing the AI industry with favorable policies and financial incentives, seeking to build a tech ecosystem that is independent of Washington.
Alibaba has integrated its Qwen AI model into its e-commerce platforms and is pouring $50 billion over the next few years into cloud infrastructure, even designing its own AI chips.
The risk is that the Chinese companies remain mostly stuck in their own market, which is in the economic doldrums, and volatile geopolitics are a challenge.
Buying Chinese AI stocks isn't seamless for American investors and sometimes is impossible, but more Chinese initial public offerings are coming that give investors an opportunity to get in on the ground floor.
