Chinese technology stocks are once again in the spotlight with positive news! Last week, A-share tech stocks collectively strengthened. Over the just-concluded weekend, the sector received more good news: Bloomberg Intelligence indicated that the earnings growth of the China Tech Giants Index is expected to reach a major inflection point in 2026, projected to surpass the "Magnificent Seven" US stocks for the first time since 2022.
Tech stocks are being "sought after". Last week, in the A-share market, technology stocks rose significantly, with sectors like AI applications and semiconductors experiencing a full-scale surge. Specifically, weekly gains for indices tracking semiconductors, AIGC, AI healthcare, and multimodal AI all exceeded 10%, while the AI Agent index also rose over 9%.
Bloomberg pointed out that Asian tech stocks have started 2026 on a strong note, with investors betting that their growth momentum and superior performance relative to US peers will persist throughout the year.
So far this year, a major Asian tech index has climbed approximately 6%, outperforming the Nasdaq 100 Index's 2% gain. Investors are rotating capital into the Asian region, which is at the core of the global semiconductor supply chain. This shift in capital flows reflects growing skepticism about whether US tech stocks can maintain their AI-driven rally after years of substantial gains.
Major financial institutions hold a positive outlook on the prospects of the Asian market. Goldman Sachs strategists currently maintain an overweight rating on the sector, believing that the surge in AI-related demand and reasonable valuations will drive stock prices higher. Citigroup also noted that, given the importance of Asian tech stocks in the semiconductor supply chain and their potential for earnings upside, global long-term investors are continuously increasing their holdings of related stocks.
Simultaneously, the Chinese market is a key component of investing in Asian tech stocks. In the new year, market enthusiasm for China's technological strength continues to run high, fueled by factors such as DeepSeek's published paper proposing a more efficient AI development path, the rising global popularity of Kuaishou Technology's video editing AI model, and policy-level support for technological innovation.
Bloomberg Intelligence stated that the earnings growth of the China Tech Giants Index is expected to witness a major turning point in 2026, projected to exceed the "Magnificent Seven" US stocks for the first time since 2022. Furthermore, supported by this optimistic sentiment, the pipeline of AI-related companies seeking listings in China is growing. Just last week, two companies, MiniMax and Zhipu AI, went public.
Institutions: Focus on Investment Opportunities in the AI Application Layer. The AI industry is currently experiencing密集 activity, with overseas companies like xAI and Anthropic securing funding successively, the introduction of domestic "AI + Manufacturing" specific policies, and the strong post-IPO performances of Zhipu AI and MiniMax. The subsequent launch of DeepSeek-V4 is expected to trigger a new wave of AI application enthusiasm.
CSC Financial expressed that as model capabilities continuously improve, particularly with the significant reduction in inference and long-context window costs, downstream AI application scenarios are accelerating into the commercial validation phase. They recommend focusing on areas like search & marketing, coding, multimodal AI, agents, and AI for Science, suggesting that the commercialization progress of related companies is likely to accelerate further.
According to The Information, DeepSeek is expected to officially release its next-generation V4 model around mid-February. Breakthroughs for V4 may primarily manifest in several aspects: firstly, programming capability; internal preliminary benchmark tests at DeepSeek show that V4's performance on programming tasks has already surpassed current mainstream models. Secondly, the ability to process and parse extremely long code prompts. Thirdly, V4's understanding of data patterns has improved across various stages of the training process and is less prone to degradation. Fourthly, its reasoning capability is more rigorous and reliable.
Kaiyuan Securities noted that at the beginning of 2025, the emergence of DeepSeek not only brought domestic large models to the world's attention, reshaping the global AI competitive landscape, but also established profound influence within the open-source community. Since early 2025, the DeepSeek model has undergone continuous upgrades and iterations, and the release of V4 is anticipated to bring more surprises. With recent密集 industry catalysts, they advise continuing to focus on investment opportunities in the AI application layer.
Recently, domestic internet companies have been intensifying efforts to promote AI application products and compete for user access points. For instance, Alibaba launched the "Qianwen" APP, which can not only "converse" but also "handle tasks" for users, aiming to create the best personal AI assistant. Ant Group introduced the full-modal general AI assistant "Lingguang" and the healthcare AI application "A Fu," with the latter reportedly already reaching 30 million monthly active users and exceeding 10 million daily queries. Meanwhile, ByteDance's Doubao has surpassed 100 million daily active users, and Volcano Engine has become the exclusive AI cloud partner for the 2026 Spring Festival Gala. Furthermore, the recent listings of large model companies like Zhipu AI are also expected to positively impact the entire industry's development.
Oriental Securities believes that against the backdrop of a new round of model iterations and accelerated application promotion by major internet companies, AI applications will present favorable investment opportunities. Additionally, the computing power supply chain is also expected to benefit from the demand increase driven by the acceleration on the application side.
Zhongyou Securities stated that, driven by the combined effect of new AI-driven demand and policy support, the IDC industry is expected to see an improvement in its supply-demand dynamics. On one hand, the回流 of major companies' Capex to AI, increased acceptance of domestic computing power, and marginal improvements in high-end NV chips are expected to drive a restart of tendering and the落地 of large orders. On the other hand, cautious energy consumption approval processes and the scarcity of core location resources have significantly slowed down the addition of无序 new supply. Consequently, 2026 is expected to enter a realization period characterized by order recovery - concentrated delivery - rising rack utilization rates - profit release. Industry utilization rates and price signals may improve simultaneously, providing conditions for valuations to recover from bottom levels towards a normal range. They recommend focusing on IDC manufacturers领先 in regional positioning and resource reserves.
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