{"id":156280,"date":"2025-11-24T01:52:08","date_gmt":"2025-11-24T01:52:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/156280\/"},"modified":"2025-11-24T01:52:08","modified_gmt":"2025-11-24T01:52:08","slug":"chinas-ai-stock-rally-has-room-to-run-as-valuations-lag-us-giants-goldman-sachs-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/156280\/","title":{"rendered":"China\u2019s AI stock rally has room to run as valuations lag US giants, Goldman Sachs says"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The artificial intelligence-led stock rally in China is far from a bubble, as the nation\u2019s technology firms still have room to expand valuations and earnings through their focus on applications, according to Goldman Sachs\u2019 chief China equity strategist.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">China\u2019s approach to investing more capital in AI applications as opposed to the US strategy of focusing on computing power gave investors \u201ccomfort that its AI monetisation capability could be better, at least in the short term\u201d, Kinger Lau said in an interview on Thursday.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cThe key question is how companies monetise the demand for AI-related products,\u201d he said. \u201cRelative to the US, Chinese companies focused on applications are still trading at much more reasonable valuations.\u201d<\/p>\n<p>His remarks come amid growing jitters of a global AI bubble, with surging stocks and vast investments seemingly racing ahead of fundamentals. Optimism around China\u2019s ascent as an AI superpower has intensified since start-up DeepSeek introduced efficient low-cost models and Big Tech firms <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/tech\/tech-trends\/article\/3332808\/chinas-tech-giants-set-lead-ai-growth-2026-despite-chip-shortage-jpmorgan?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">launched new AI tools<\/a>.<img decoding=\"async\" alt=\"Kinger Lau, chief China equity strategist at Goldman Sachs. Photo: Dickson Lee\" data-qa=\"BaseImage-handleRenderImage-StyledImage\" class=\"e1gf69pb2 css-6ikqhs e445x7d0\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/11\/6f18ec0a-d886-4d12-8c54-99541851b006_fe822e91.jpg\" title=\"Kinger Lau, chief China equity strategist at Goldman Sachs. Photo: Dickson Lee\"\/>Kinger Lau, chief China equity strategist at Goldman Sachs. Photo: Dickson Lee<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cChina\u2019s AI stock boom is far from a bubble from a valuation perspective,\u201d Lau said. The top 10 tech companies in China have a combined market capitalisation of US$2.5 trillion, while their US counterparts are at US$25 trillion \u2013 a tenfold difference. These US companies also represent about 40 per cent of the S&amp;P 500 market capitalisation, while their Chinese peers account for about 15 per cent of the broader group.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cThe AI story will play out in China,\u201d Lau said. \u201cThe AI investment cycle, which is around 18 months behind the US, has more room to grow and translate into earnings and revenue growth.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The artificial intelligence-led stock rally in China is far from a bubble, as the nation\u2019s technology firms still&hellip;\n","protected":false},"author":2,"featured_media":156281,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,3989,88134,218,219,114,35908,4067,222,7316,61,60,88135,88136,2233,80,90],"class_list":{"0":"post-156280","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-applications","10":"tag-ai-investments","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-china","14":"tag-chinese-companies","15":"tag-deepseek","16":"tag-earnings","17":"tag-goldman-sachs","18":"tag-ie","19":"tag-ireland","20":"tag-kinger-lau","21":"tag-msci-china-index","22":"tag-sp-500","23":"tag-technology","24":"tag-us"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/156280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=156280"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/156280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/156281"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=156280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=156280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=156280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}