Is the market doing justice to them?
The Chinese EV startups $NIO-SW(09866)$ , $XPENG-W(09868)$ and $LI AUTO-W(02015)$ have been weighed by slowing domestic EV demands, not helped by overcapacity as a result of more players jumping onto the bandwagon and aggressive expansion to secure market shares in the highly competitive Chinese market. Nevertheless, the Chinese EV makers have proven themselves in containing their costs, sealing partnerships and expanding to overseas markets. With better knowledge of the local market, their sales have proven to be resilient despite slowing demands at the expense of Tesla, while their profit margins have remained stable with their lean cost structures. With their lower cost structures and richer EV lineup to capture different segments of the market, the Chinese EV makers have been giving Tesla a run for its money. I believe the current stock prices of the Chinese EV makers are not doing justice to their fundamentals and may present opportunities to participate in their long-term growth.
While $Palantir Technologies Inc.(PLTR)$ and $C3.ai, Inc.(AI)$ may not be the poster boy like Nvidia for artificial intelligence, I like the duo for carving out their niches in the big data analytics and enterprise AI spaces. Among the first movers in rolling out AI solutions, Palantir and C3.ai are well-positioned to tap on the growing demands for AI applications. Well-known for its close collaborations with the US government, over the last couple of years Palantir has made a deliberate effort to expand beyond the public sector, and indeed the strategy is paying off as it has been enjoying impressive growth in the private sector. Likewise, amidst rapid acceleration of digital transformation being all the rage since the onset of the COVID pandemic, C3.ai has found itself in the centre of rising demands for enterprise AI applications.
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