Goldman Sachs Highlights China's AI Hardware Infrastructure

The core focus of Chinese AI-related stocks is shifting from software to hardware infrastructure. Goldman Sachs is paying attention to the power supply chain, PCBs, optical modules, and data centers, supported by the increase in China's high-value electronic product exports and the growing power demand for data centers. Goldman Sachs forecasts that China's data center power demand will increase by 25% by 2025, and investments related to AI will exceed $70 billion by 2026. AI hyperscalers refer to large tech companies that operate AI services based on large-scale data centers and cloud infrastructure. China's exports in May increased by 19.4% year-on-year, with exports of integrated circuits and automatic data processing equipment rising by 110.9% and 66.1%, respectively. Caixin reported on July 10 that the Shanghai STAR 50 Index rose by more than 8%. Goldman Sachs suggests shifting capital from Korean AI trades to the Chinese AI value chain, evaluating China as a market where AI supply chains and manufacturing capabilities are combined. AI infrastructure investments are closely related to the expansion of data centers and associated power networks, cooling, optical communications, server boards, and energy storage devices.

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