Key facts
- Chinese power parts makers' shares have struggled to capitalize on AI-linked investment.
- US and European equipment makers have benefited from the global AI investment wave.
- CSI Solar shares surged over 40% and TBEA rallied nearly 30% in a market surge.
- AI's energy demand is fueling a multi-year power cycle in China.
- Founder Securities analyst Guo Yanchen sees investment opportunities in power equipment and energy storage.
- UBS forecasts China's power demand could grow about 8% by 2028.
Shares of Chinese power infrastructure companies have not fully translated the surge in artificial intelligence-linked investment into higher stock prices, despite a global AI wave benefiting equipment makers in the US and Europe. While AI's substantial energy requirements are igniting a new boom and creating multi-year power cycles, as seen with CSI Solar's over 40% share surge and TBEA's nearly 30% rally, the benefits for Chinese manufacturers are tempered. These companies face swelling order backlogs but their reliance on state-owned customers limits profit realization. Founder Securities analyst Guo Yanchen noted ongoing investment opportunities in power equipment and energy storage, a sentiment echoed by Microsoft CEO Satya Nadella's warning about energy availability being a bottleneck for AI's expansion. UBS analysts reinforced a bullish outlook, forecasting an approximately 8% growth in China's power demand by 2028, driven by easing domestic chip constraints and intensified AI infrastructure spending.