tech
These 10 Chinese stocks are powering U.S. data centers
Many of the top-performing mainland Chinese stocks this year make components used in data centers globally, according to 22V Research.
TL;DR
- China is a critical supplier for less glamorous but essential data center components, including energy storage, transformers, minerals, and chemicals.
- AI-related exports account for approximately half of China's export growth this year, with many contributing companies listed in Shenzhen.
- Several Chinese hardware companies powering AI data centers have seen their stock prices at least double in the past year.
- Companies like Victory Giant, Dongshan Precision, Shengyi Technology, and Sanhuan Group produce components such as printed circuit boards and capacitors.
- Foxconn Industrial Internet and Sungrow Power are also significant players in the server and energy sectors, respectively.
- Optical and networking companies like InnoLight, Eoptolink, and TFC are vital for high-speed data center connectivity.
- The demand for fiber optic components in AI data centers is high, leading to significant export growth and price increases for Chinese suppliers.
- Recent stock gains have pushed InnoLight and Foxconn Industrial Internet into the 1 trillion yuan market cap range.