Red alert: The AI bloodbath is not over yet! - Part 11

Here's the latest updates for our shortlisted 5 sectors in China/HK.

1. AI

China had rejected the US suggestion to slow down the AI developments and it would continue to progress its AI developments at its own pace.  In other words, China will continue to support or expedite its AI developments.

Recently, Z.ai had increased its revenue forecast by 25% and minimax had been included in Singapore government sponsored AI programme (skillsfuture).  As China AI companies continue to expand their AI businesses in the east and west, their market shares and revenues will grow consistently.

2. EV

A major EV company (Xpeng) had decided to licence its car technologies to foreign automakers to boost its revenues.

Moreover, BYD and Xiaomi might join Xi's US visit to seek for US business opportunities.

3. Robot

Besides offering car technologies to foreign competitors, Xpeng had also decided to bring forward its mass production of  humanoid IRON to end of 2026.

Moreover, other EV makers such as BYD and Xiaomi are also developing their own humanoids to ride on this bandwagon.

4. Semiconductor

China's semiconductor industry is flourishing because many china firms are pivoting to domestic chips.  For example, Deepseek had just ordered 160,000 AI chips from Huawei.

Subsequently, Huawei had also decided to expedite its AI chip progress to meet the burgeoning domestic demands.  Furthermore, Huawei will start to use its tau logicfolding technique on its Ascend 960 series chip.

How good is Huawei Ascend 960 series chip?

The Ascend 960 series will be a 3nm class node chip compared to Ascend 950 (5nm class node) chip because the Ascend 960 will be using the Tau logicfolding technique.

The first huawei chip to use the Tau logicfolding technique is the upcoming Kirin 9050 mobile chip and it is used for the Huawei Mate 90 phone.

Therefore, we foresee that SMIC will benefit tremendously from the progressive chip developments because it is the only semiconductor fab that is capable to do mass production for advanced chips (7nm and below).

5. Memory chip

China mobile and technology manufacturers are also pivoting to domestic memory chips from YMTC and CXMT.

Furthermore, CXMT has achieved some breakthrough in its production process to meet the overwhelming demands for memory chips.

Who else will benefit from the overwhelming memory chip demands?

Montage Technology (HK/China) had just been included in Samsung Electronic and SK Hynix supply chains and it is already an existing supplier for CXMT.

In conclusion, the 5 promising sectors that we've shortlisted will have good fundamental and great potential for high returns in the foreseenable future and we hope that our viewers will benefit from our macro analyses.  Cheers!