Chinese technology stocks rallied on Wednesday as growing bets on artificial intelligence lifted investor sentiment. Shares of Alibaba BABA, Baidu BIDU, JD.com JD, PDD PDD, NIO NIO, Li Auto LI, and XPeng XPEV all advanced, underscoring renewed confidence in China’s tech and electric vehicle sectors.
Charu Chanana, chief investment strategist at Saxo Markets, told Bloomberg that Chinese tech leaders are ramping up AI spending and product launches, from models to robotaxis and in-house chips, demonstrating they can monetize AI faster than expected.
Wall Street has begun to acknowledge that momentum. Goldman Sachs recently raised its price forecast on Alibaba, while Arete Research upgraded Baidu to Buy, citing growth prospects from its chip business.
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Bloomberg Intelligence projects that capital expenditures among China’s largest internet companies will more than double to $32 billion in 2025.
The push for funding is already evident: Alibaba last week raised $3.2 billion through a convertible bond sale, while Tencent TCEHY tapped the offshore market with 9 billion yuan ($1.2 billion) in dim sum bonds, its first debt issuance in four years.
Stock performance has reflected that optimism. Alibaba has surged more than 91% year-to-date, buoyed by momentum in its cloud division, progress in AI models, and renewed visibility of co-founder Jack Ma, who has reappeared at the company’s Hangzhou headquarters.
Baidu has gained 47%, while PDD rose 33%. In the EV sector, NIO climbed 61% and XPeng advanced 81%, highlighting broad-based investor enthusiasm for Chinese growth names.
Recent developments have provided further tailwinds. State broadcaster CCTV confirmed that China Unicom is deploying Alibaba-designed AI chips in a major data center, underscoring Beijing’s drive to strengthen domestic semiconductor capabilities.
Meanwhile, Semiconductor Manufacturing International Corp. (SMIC) received a lift from reports it has begun trials of homegrown lithography equipment, a step seen as critical to reducing reliance on foreign suppliers.
Geopolitical sentiment also played a role. Hopes of improved U.S.–China relations rose after U.S. President Donald Trump said he plans to hold talks with Chinese President Xi Jinping on Friday, fueling optimism that tensions could ease between the world’s two largest economies.
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