What happened
Since July, foreign institutions have flocked to survey A-share companies tied to China's AI industry chain, with a notable emphasis on optical communications and computing chip leaders. Montage Technology drew 56 foreign institutions, making it the most popular target in computing infrastructure; Zhongji Innolight, WUS Printed Circuit, Tianfu Communication and Eoptolink attracted 32, 29, 20 and 16 respectively.
AIoT and semiconductor design firms also drew attention: Espressif received 19 foreign-institution visits, GigaDevice 11 and Rockchip 6. On the upstream equipment and materials side, ACM Research Shanghai was visited by 19, Jingzhida by 8 and Dinglong by 5.
Despite a pullback in the tech sector since July, foreign institutions' medium- and long-term confidence in China's AI chain remains intact. Morgan Stanley Fund noted market views are divided after the adjustment, with some seeing crowded trades as digested and others worrying about profit-delivery pressure and concentrated high-level chip positions; it stressed tech's key driver is whether AI industry narratives keep strengthening.
Why it matters
These research visits signal that overseas investors are closely tracking China's AI build-out across the full stack, from computing infrastructure and optical modules to semiconductor localization and AI-terminal applications. The concentration of interest points to areas foreign funds see as strategic for China's AI competitiveness.
Goldman Sachs highlighted a potential mismatch: China's AI segment accounts for 10% of global AI market capitalization but generates 16% of global AI-related revenue, while global funds allocate only 1.2% of their portfolios to Chinese AI targets. The bank argued that correcting this gap could bring more than $100 billion in incremental foreign inflows.
Value Partners framed China's tech self-reliance as a long-term trend with the AI chain at its core, saying the nation's industrial system and supply-chain strengths are accelerating the build-out from underlying infrastructure to semiconductors, system integration, AIDC operations and large-model applications — creating investment opportunities along the entire chain.
Key facts
Since July, Montage Technology has been surveyed by 56 foreign institutions, the highest among computing-infrastructure targets.
Goldman Sachs estimates China's AI market cap is 10% of global AI, with 16% of global AI-related revenue and only 1.2% average global-fund allocation.
Morgan Stanley Fund says tech remains a high-attention area and its direction depends on whether the AI narrative continues to strengthen.
What to watch next
Watch whether the AI narrative continues to strengthen, as Morgan Stanley Fund says this will likely determine whether tech remains a favored overweight area and how its internal structure evolves.
Monitor whether overseas funds increase allocations to Chinese AI assets. Goldman Sachs' estimate of a potential inflow exceeding $100 billion hinges on the market-cap/revenue mismatch being corrected.
Keep an eye on full-chain breakthroughs in China's AI industry, from upstream equipment and materials to computing infrastructure and terminals, as Value Partners sees opportunities across every stage as the supply chain matures.