Chinese technology firms, led by companies like Alibaba and Tencent, are currently outperforming their US counterparts. This surge is attributed to the impact of DeepSeek and strong government support in China. While US tech giants are facing market corrections, Chinese tech stocks have soared by over 40% in 2025, driven by advancements in AI technology and favorable government policies. Societe Generale SA has identified a group of top Chinese technology companies, known as the ‘7 titans,’ which includes Alibaba Group Holding and Tencent Holdings, among others. This group has seen significant growth, with a combined value increase of $439 billion.
In comparison, US tech giants, known as the ‘Magnificent Seven,’ including companies like Alphabet, Amazon, and Apple, have experienced a decline in their stock prices, resulting in a slump of about 10% since the beginning of the year. This shift in performance has been attributed to the impact of DeepSeek and challenges related to disappointing earnings and broader economic pressures in the US.
Chinese technology stocks have experienced a recent rally, supported by Beijing’s plans to strengthen the sector and the introduction of new AI innovations. This has led to a jump in the Hang Seng China Enterprises Index and increased investor interest in Chinese tech companies. Despite the recent surge, analysts at Societe Generale SA believe that the ‘7 titans’ of China’s tech industry still present attractive investment opportunities, trading at a lower valuation compared to their US counterparts. With robust government backing, rebounding profits, and AI as a long-term growth engine, Chinese tech companies are poised for continued success in the global market.
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