The advancement of artificial intelligence (AI) has been a hot topic in recent months, generating significant interest among investors and market analysts alikeWith the rise of AI stocks, particularly those linked to general artificial intelligence concepts, the question on everyone's mind is: how far can this trend go? Many experts are optimistic about the prospects for AI, noting that 2025 could be a pivotal year for the industryThis expectation stems from the belief that the medium to long-term trends in the AI landscape are irreversibly in favor of technological development and innovation.

During the Chinese New Year, for instance, a domestically developed AI model known as DeepSeek gained tremendous popularity both domestically and internationallyThis surge in interest around DeepSeek has positively impacted other stocks in the industry, particularly in Hong Kong's market, where several stocks in the AI and semiconductor sectors have also performed wellNotably, in the A-share market, stocks like Changsheng Bearing and Sanhua Intelligent Control have reached historical highs, driven by the general excitement around AI.

Market analysts are depicting an encouraging picture for AI-related funds as wellFrom the beginning of 2025, funds focusing on technology and AI have consistently outperformed other investment vehiclesFor example, the Kexin AI ETF reported a net asset value increase of 13.39% as of February 5, leading the ETF rankingsThis indicates strong investor confidence and interest in AI as a powerful investment sector.

According to Dongwu Securities, humanoid robots are seen as the ultimate embodiment of artificial intelligence, suggesting that when mass production begins, it may herald a decade-long industrial boomHuaxi Securities has highlighted that the success of DeepSeek could significantly alter the current landscape of the AI industry, indicating both challenges and opportunities regarding global competitionThey pointed to how the dynamics of model development, including open-source and closed-source models, play a critical role in determining market leadership.

Reports from accessible resources highlight a transformational moment for China’s AI sector

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Since ChatGPT’s global emergence in early 2023, the country’s AI industrial chain has been engaged in a competitive catch-upWith DeepSeek's recent release, which quickly soared to the top of the App Store download charts in 140 nations, China’s position appears to be shifting from a follower to a leader in the AI spaceThe model has garnered attention for its open-source nature, low cost, and strong reasoning capabilities, marking a notable milestone for Chinese AI development.

As investors ponder the future of this AI-driven market, fund managers are anticipating multiple growth avenuesAn insightful path can be traced back to their forecasts and allocations in their Q4 2024 reportsAccording to Zhang Lin of CMB Technology, there has been a marked increase in exposure to Hong Kong stocks, as they currently offer compelling ratios of value and potential returns compared to historical data and other global marketsZhang attributed this shift to recovering domestic economic conditions and a burgeoning cycle of technological hardware innovations.

Analyzing the overall market situation, Zhang maintains that the evolution of general artificial intelligence remains a principal theme within the tech industryThe trajectory of AI development spans from substantial model training efforts to practical applications in robotics and intelligent driving, extending further across various industriesDespite encountering bottlenecks in foundational model training, Zhang notes a meaningful merging of advanced models with industrial applications, particularly in the computing and promotional arenasThe domestic industry is evolving rapidly, diminishing the distance between local firms and their international counterparts.

In the context of AI, Liu Huiying from Nuoa actively endorses a shift towards domestic edge applications in AI, emphasizing the inevitability of long-term growth trends in this sectorObservations suggest that many startups and established tech giants in China, deeply attuned to consumer nuances, are crafting remarkable applications

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