The mainland chip-centric gauge, well known as the STAR50, is currently trading at 57x positive revenues and is trading over 41 in five years average
[HONG KONG] Chipmakers and Cloudstock are one of the major beneficiaries of China's push for homemade technology.
Stocks such as artificial intelligence (AI) chip designer Cambricon Technologies and production gear maker Naura Technology Group have spiked the quarter as traders bet that the public's willingness to become independent exceeds sector growth. Their optimism also sent the SSE Science and Technology Innovation Board 50 Index, a gauge-heavy index from a trait chip maker, surged at a record 28% last month.
This profit is supported by Beijing's support for emerging technologies and by increasingly turning large companies like Alibaba Group into domestic chips. Officials are also urging local businesses to avoid using NVIDIA H20 processors, citing security concerns and uncertainties about the Trump administration's export curbs.
Still, investors question the longevity of the ratings as balloons. The mainland chip-centric gauge, better known as the STAR50, is currently trading at 57x positive revenues, above the five-year average of 41.
Although decoupling from the US in China's semiconductors takes years, “creates great investment opportunities,” says Jian Shi Cortesi, fund manager at Gam Investment Management in Zurich. “I don't chase at the current level and I'm waiting for the opportunity to buy with a more attractive rating.”
Potential winners from China's chip boom include:
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Chip Maker
Three months of successive progress has led to Semiconductor Manufacturing International's Hong Kong increasing by 83% this year, while Hua Hong Semiconductor has more than doubled.
Stock collection in the sector reflects investors' expectations that more products will be made at home, according to Bush Chu, investment manager at Aberdeen Investments.
The US decision to revoke approval to ship freely to major Chinese chip-making bases in Taiwan's semiconductor manufacturing industry has also further strengthened the rise of local manufacturing.
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Chip Designer
The shares of Cambricon, known as China's “Little Nevidia,” are being boosted by the country's pivot from H20 Chips.
The stock price surged 87% this year, temporarily becoming the most expensive onshore share last month. It is currently trading on more than 140 times more advanced revenue, causing scrutiny from regulators and worries about how a stock reversal will cause a big loss to retail investors.
“We're looking forward to seeing you in the future,” said Dave Mazza, CEO of Roundhill Investments in New York.
Huawei Technologies leads in AI chip design, but local peers such as Cambricon and Hygon Information Technology have benefited from the market's attention, especially since Huawei is not publicly available.
Semiconductor production equipment
According to Oliver Cox, manager of the US$2.1 billion Asia-Pacific Equity Fund at Hong Kong's JPMorgan Asset Management, this is one way equipment suppliers are exposed to the chip-making ecosystem, as these companies tend to become “customer agnosticists.”
Beijing-based Nowra Technology and Shanghai's advanced microfabrication equipment produce a range of tools throughout the chip manufacturing process. Both stocks outperformed Global Peers, Applied Materials and Tokyo Electronics in 2025.
Meanwhile, optical transceiver manufacturers Eoptolink Technology and Zhongji Innolight are surged by three times. Beijing Huafeng Test & Control Technology, better known as Accotest, outperforms Japan's benefits, exceeding about 60%.
Cloud Providers and Data Centers
Bloomberg Intelligence analyst Robertley says server and cloud companies can benefit as they drive the backbone of their intelligent systems.
Hong Kong has risen 40% from its April low after listing shares in Alibaba, a key player in the cloud space, and surged revenues from China's AI boom. The company also supports stocks, which reports that it has created a chip that can operate AI services.
The ordinances by Tencent Holdings and Tiktok owners can benefit from a focus on cloud services. AI server providers include Huawei, Lenovo Group and IEIT Systems. Bloomberg
