Shares of Chinese AI company XL2CSOPHSTECH surged 5.44% on Wednesday, as global investors pile into the nation's tech stocks amid optimism over the country's AI prowess sparked by DeepSeek's breakthrough AI model.
The bullish sentiment is being echoed by major Wall Street banks and strategists. Morgan Stanley stated that global investors are reassessing China's investability in the tech and AI space after a period of limited attention. They expect the AI-driven momentum to sustain in the near-term given investors' light positioning in Chinese stocks.
JPMorgan and UBS also joined the bullish chorus, highlighting the potential for a further rally in AI-related names. According to UBS, the current AI buzz seems to be less than halfway through the cycle based on historical tech rallies, suggesting more upside could be in store with ample liquidity and lower interest rates boosting valuations.
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