A recent report from 22V Research highlights the critical role of mainland China-listed companies in the AI supply chain, particularly in producing components necessary for data centers, despite China's limitations in manufacturing advanced chips.
The U.S. relies on these Chinese firms for nearly 30% of its AI-related imports, with AI exports contributing to half of China's overall export growth this year. The report notes that the ChiNext index, which tracks Shenzhen-listed companies, has doubled in value over the past year, driven by hardware stocks.
Among the top ten AI supply chain companies by market capitalization, nine have seen their stock prices at least double in the last year, with notable mentions including CATL, Victory Giant, and Foxconn Industrial Internet.
The report also emphasizes the importance of optical technology in data centers, which require significantly more fiber than traditional setups, leading to a surge in demand and export values for optical components.
As local investor interest in Chinese tech rises, companies like InnoLight and Foxconn Industrial Internet are reaching market caps of 1 trillion yuan, indicating a shift in market dynamics that investors should closely monitor