China’s push for global supremacy in artificial intelligence technology is increasingly benefiting companies that supply the rest of the world, with investors favoring such stocks as fierce competition hurts their domestically focused peers. A Bloomberg gauge tracking 30 Chinese technology stocks with the biggest overseas revenue exposure has delivered a return of 36% this year, versus 9% for those more dependent on local sales. A separate measure of the export-oriented firms’ outperformance over the other group is set for the strongest-ever reading this year.
The contrasting fortunes partly result from Beijing’s ambition to build its own AI ecosystem. The self-sufficiency campaign has led to intense local competition and a vicious price war that has eroded profit margins on chips to robotics. Meanwhile, export-oriented Chinese companies have thrived on surging global demand for AI infrastructure such as data centers.
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