UBS narrows down Chinese artificial intelligence to two major companies. Leaders and delays are now emerging as several mainland companies have had the opportunity to monetize generative AI over the past two years. “We like to strongly implement AI-driven and Alpha growth names,” the team led by investment bank Hong Kong-based strategist Eva Lee wrote in a report earlier this month. “We believe that the sector is still not fully priced with growth prospects.” “China’s internet leaders are accelerating AI monetization backed by domestic chip development and LLM innovation,” analysts say, referring to advances in large-scale language models powered by generated AI. Alibaba supports Tencent, which UBS analysts traded in Hong Kong with US-listed Alibaba in the AI category, based on a positive second-quarter results in late August. Alibaba’s stock has so far increased 83% in the US, while Tencent has earned more than 54% in Hong Kong. The pair outperformed Chinese internet rivals Baidu and JD.com. According to UBS analysts, stake in food delivery provider Meituan has fallen by more than 36% in Hong Kong. Regarding Tencent, you may benefit from “enhanced AI in games and ads.” [with] Potential benefits from AI agents. “This is evident in both the actual numbers and the positive management outlook, especially in the advertising and gaming space,” UBS analysts said. UBS analysts in particular highlighted how the two AI stock picks highlighted the availability of multiple options for inference chips, reduced reliance on import chips, and how two Chinese companies strengthen spending to acquire future AI opportunities for future AI opportunities. Over the past four quarters, it has affirmed more moves in 2Q25, reaching 19.1 billion yuan in the second quarter. And each has other major business segments – Alibaba’s e-commerce is being immediately subsidized in a fierce competition with rival JD.com.
