According to market insights, Citi analysts recently released a report summarizing feedback from investor roadshows in China, the U.S., and Europe. The report highlights growing interest from long-term investors in Chinese tech stocks, with market focus centered on the AI supply chain.

Citi outlined a clear investment priority for the AI supply chain: optical modules (with scale-up opportunities) > PCB sector > ODM manufacturers benefiting from rising AI server demand.

Key takeaways from the report include:

- By 2027, high-speed optical modules may see upside potential, driven by untapped expansion opportunities. - PCB supply constraints could persist through 2026, with aggressive players like PCB Bancorp likely gaining additional demand from ASICs while maintaining a strong position in Nvidia’s supply chain.

Regarding China’s AI capital expenditures, investors are closely monitoring: - The investment scale required for Alibaba’s data center 10x expansion. - AI chip supply capacity. - Monetization pathways for AI investments.

The report notes that 7nm-equivalent wafer capacity should meet domestic AI chip demand by 2026 (even if demand doubles from 2025 levels). On monetization, investors broadly agree that consumer-facing (ToC) AI applications face challenges, while enterprise (ToB) opportunities lie in software solutions for SMEs. Additionally, smart glasses as AI edge devices are attracting increasing investment interest.