China tech stocks: BNP Paribas sees AI, and big profits

Even though the AI wave seems like an American party, some are sniffing out opportunities elsewhere. Sophie Huynh, from BNP Paribas Asset Management, sees gold in Chinese tech stocks. According to her, the Dragon is ready to catch up fast.

While Europe lags a bit, Huynh suggests the most advanced AI models will stay in the US. But Asia, especially China, isn't just sitting around. Sophie Huynh, portfolio manager at BNP Paribas Asset Management, told Bloomberg Television that China is just six months behind the United States in frontier AI models. A juicy prospect for investors, wouldn't you say?

When experts talk about "AI rotation," they mean a shift in investment direction. Basically, capital moves from today's overvalued AI companies to those promising future growth. China, in this scenario, is the perfect candidate to capture that next wave.

So far, the hype has sent shares of big American tech companies-those making chips or cutting-edge AI models-sky-high. But markets, as we know, are cyclical. This "rotation" is about anticipating the next big thing, before everyone else jumps on board. It's like switching horses mid-race, picking the one that still has its full potential to show. A game for those with strong nerves, but will it pay off?