GO
| HSI1 | 23,919.50 | 0.00 | -- |
| HSCEI1 | 8,057.59 | 0.00 | -- |
| Back Zoom + Zoom - Block Traded | |
|
2026-11-03 16:11:08 Chinese chipmakers are riding on growth in AI capex, but internet companies will be the ultimate beneficiaries over the long term, Morningstar opined in a research report. The researcher named TENCENT (00700.HK) and BABA-W (09988.HK) as its top picks, citing their existing businesses that can provide earnings support and maintain greater resilience even if AI adoption or monetization progress falls short of expectations. AI was also anticipated to facilitate the development of their internet, advertising and gaming businesses. Chinese AI models continue to see rising adoption rates in light of their competitive speed and cost advantages, although the earnings outlook for AI companies still faces challenges, the researcher said. Listed companies Z.AI (02513.HK) and MINIMAX-W (00100.HK) both recorded strong YoY revenue growth in 1H26, but both continued to post net losses. Despite robust demand, Morningstar believed valuations of Chinese AI chipmakers may be too high. Share prices of SMIC (00981.HK), HUA HONG GRACE (01347.HK) and CXMT (688825.SH) remain demanding relative to their estimated fair values, while heavy capital expenditure is also putting pressure on FCF. The researcher estimated China's AI chip supply to remain below demand through 2028, with oversupply not seen until 2029. ~ AASTOCKS Financial News Website: www.aastocks.com | |