JPMorgan initiated coverage on China’s AI value chain. The bank forecasts the sector’s cumulative operating profit will reach $544 billion between 2026 and 2030.
Profit distribution is shifting toward the model and application layers. These segments are expected to drive nearly two-thirds of the industry’s profit growth.
JPMorgan designated Alibaba as a top pick with an Overweight rating. Tencent and Zhipu also earned top-pick status as primary beneficiaries of the technological shift.