While the U.S. market experiences "AI panic trading," with investors selling off software companies and wealth management firms, Chinese investors are enthusiastically embracing artificial intelligence concept stocks. This stark contrast in market sentiment reflects a fundamental divergence in how investors from the two regions view AI technology: the U.S. fears the disruption of existing business models, whereas China focuses on growth opportunities and cost-reduction potential.

Domestic companies that launched new models or upgraded existing products this month have become investor favorites. MiniMax and Zhipu AI are prime examples, with their stock prices doubling in February. Bullish ratings from Wall Street investment banks like Morgan Stanley have further fueled market enthusiasm, causing pure-play AI concept stocks to draw capital away from traditional internet giants.

This market divergence stems from differing investment logics. Charu Chanana, Chief Investment Strategist at Saxo Markets, stated that the Chinese market remains focused on what AI can contribute, rather than what it might take away from incumbent firms. U.S. investors are anxious about competitive threats to lucrative profit pools, while China's focus remains on market penetration.

Newly listed AI stocks are leading the gains. Investor favor for MiniMax and Zhipu AI is partly due to the global scarcity of publicly traded companies building large language models. Both firms listed in Hong Kong in January; Zhipu AI's stock subsequently surged 524%, while MiniMax jumped 488%. In contrast, industry pioneers like OpenAI and Anthropic remain privately held.

Other recently listed Chinese AI-related stocks have also shown strong performance. Chip designer Biren Technology has risen over 80% since its listing on January 2nd, while Montage Technology has soared more than 98% since its debut on February 9th.

Domestic companies are also benefiting from a halo effect, as private funding rounds for two U.S. firms indicate continuously rising valuations. OpenAI is nearing a fundraising round of over $100 billion at a valuation exceeding $850 billion, while Anthropia raised $30 billion at a $380 billion valuation in early February.

Technical breakthroughs are boosting valuations. The release of new models and funding data has prompted a re-rating. Analysts including Edison Lee at Jefferies wrote in a February 13th research report, "There is upside potential for Chinese AI valuations."

Zhipu AI's recently launched latest large language model, GLM-5, surpassed a competing product released weeks earlier by Moonshot AI on the benchmark website Artificial Analysis, claiming the top spot among global open-source models. According to the Jefferies report, this marks the highest ranking ever achieved by a Chinese AI lab.

Part of the market enthusiasm is linked to DeepSeek, with expectations that it will soon release a next-generation model, potentially boosting the entire sector. The market also anticipates that the cost competitiveness of Chinese AI models like DeepSeek could accelerate user adoption.

Currently, domestic investors view every new AI development as a catalyst, benefiting not only the developers but also the users of new tools. ByteDance's recent launch of a video creation application triggered a collective rise in film and media stocks.

Gary Tan, a portfolio manager at Allspring Global Investments, commented, "The divergence between Chinese market participants and global investors reflects the structural uniqueness of China's AI landscape." However, some market observers warn that if profit growth fails to keep pace with investor optimism, the valuation re-rating may be difficult to sustain.