Goldman Sachs is directing investors toward mainland-listed Chinese stocks in power supply chains, hardware infrastructure, and physical AI applications, betting on a surge in the country's chip exports. The bank projects double-digit upside for major China equity indices by the end of 2026.
Goldman Sachs is steering investors toward mainland-listed Chinese stocks riding the country's AI hardware boom, favoring onshore companies over the Hong Kong-listed tech names that have typically drawn attention. The bank has singled out three sub-sectors: the power supply chain, hardware infrastructure such as printed circuit boards, optical modules and data centers, and what it calls "physical AI applications" — industrial intelligence and humanoid robots.
This pivot follows a sharp jump in China's chip exports, which rose 111% year-over-year in May 2026, a sign of how much global markets are hungry for AI hardware. Goldman sees these hardware-focused segments offering robust earnings visibility over the next couple of years — unlike software or broader internet stocks, these companies carry order books and supply contracts that make future revenue relatively predictable.
Its preference for mainland stocks over Hong Kong-listed equivalents marks a meaningful tactical shift as of June 2026, pointing to the A-share market as home to many of the component manufacturers and industrial technology companies best placed to benefit. These picks sit under Goldman's broader "Go Global 3.0" framework, which frames China's next export-driven growth phase around AI-enabled products rather than the low-cost manufactured goods of earlier eras.
Goldman projects that major China equity indices, including MSCI China and CSI 300, could see 12-20% upside by the end of 2026, attributing the potential gain to a combination of AI-sector momentum, export growth, and supportive government policies.
Source: Crypto Briefing
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