China’s top technology firms, such as Alibaba and Tencent, are experiencing significant success in 2025, outperforming their US counterparts due to the impact of DeepSeek and strong government support. While US tech giants like Alphabet, Amazon, and Microsoft are facing market corrections, Chinese tech stocks have surged by over 40% this year, driven by advancements in artificial intelligence (AI) and favorable policies. Societe Generale SA has identified a group of seven top Chinese technology companies, known as the ‘7 titans’, which have collectively grown by $439 billion. This group includes companies like Xiaomi, BYD Co, and JD.com Inc, in addition to Alibaba and Tencent.
On the other hand, the US ‘Magnificent Seven’ companies, including Google, Amazon, and Tesla, have seen their stocks decline by about 10%, leading to a slump in the Nasdaq 100 Index. The sudden shift in favor of Chinese tech companies has surprised many investors on Wall Street. The rise of China’s technology sector can be attributed to robust government support, rebounding profits, and the potential of AI as a long-term growth engine, according to experts.
Recent developments, such as Beijing’s plans to support the tech sector and new AI innovations from companies like Alibaba, have further boosted China’s tech rally. Despite the rapid increase in stock prices, Societe Generale SA analysts believe that the ‘7 titans’ are still attractively priced, trading at a lower valuation compared to the US tech giants. This shift in market dynamics highlights China’s emergence as a major player in the global technology industry, with the potential to continue its growth trajectory in the coming years.
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