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Chinese investors move from AI chips over high valuations
Chinese investors are shifting focus from AI chipmakers to companies in power, metals, and infrastructure, amid concerns over high valuations in AI stocks.
Energy firms, utilities, and metal producers tied to AI infrastructure are seeing increased interest.
China’s energy stock index rose 10% in October and is on track to beat the CSI 300 for a second straight month.
Bank of America analysts said China is well positioned in AI infrastructure due to large generation capacity and lower power costs.
They estimate a third of AI spending by 2030 will target facilities, metals, and power.
UBS raised its forecast for China’s power demand growth to 8% by 2028 to 2030.
Shares of CSI Solar, TBEA, and Aluminum Corp. of China have risen sharply, while demand for energy storage and optical fiber makers is growing with AI infrastructure spending.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
China’s AI infrastructure rollout depends on the visibility and execution of the Eastern Data, Western Computing initiative
- Rotating into power, metals, and grid stocks hinges on a real AI pipeline. By June 2024, China put $6.1 billion into eight national computing hubs, with total investments above $28 billion 1. It installed 1.95 million server racks with 63% utilization 2, which leaves room to scale while signals remain murky.
- Guizhou hosts 49 centers with 92.6 exaflops as of September 2025 (an exaflop is roughly 1 quintillion operations per second), with 97% for intelligent computing 2. Latency between eastern and western hubs generally meets 20 milliseconds 1. PUE on new builds falls to 1.04 1. The Eastern Data, Western Computing rollout lacks a schedule. Project lists for 2024–2025, capacity adds, and grid timelines stay opaque.
Energy storage system suppliers can target near-term AI data center procurement opportunities in China
- New national hub data centers must source at least 80% of power from renewables by 2030 3, which drives buys of Energy Storage Systems (ESS). The data center storage market is projected to grow 12.8% CAGR to $537.4 million by 2030 4.
- Suppliers include Shoto, Narada Power, Gotion High-Tech, Cospowers, and CALB 5. Recent ESS tenders price product scope near $65 per kWh excluding Engineering, Procurement and Construction (EPC) plus grid hookup 6. Hardware makers, Energy Management System (EMS)/Battery Management System (BMS) vendors, plus system integrators should track tenders. Use the 13th Energy Storage International Conference ranking for timing and partnerships 5.
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