China AI Export Stocks Outperform Local Peers 36% to 9% as Domestic Price Wars Erode Margins

Chinese AI companies with heavy overseas revenue exposure have returned 36% this year, versus 9% for domestically focused peers, as Beijing's self-sufficiency drive fuels a domestic price war that has crushed margins from chips to robotics. A Bloomberg gauge of 30 Chinese tech stocks with the largest overseas revenue exposure is on track for its strongest-ever outperformance over locally dependent firms. Optical component makers Zhongji Innolight Co. and Eoptolink Technology Inc., both deriving over 90% of revenue abroad, have each rallied about 50%. Domestically oriented names have slumped. Moore Threads Technology Co. is down roughly 25% year-to-date, SenseTime Group Inc. has fallen over 40%, and Kuaishou Technology has dropped about 51%. Bank of America strategists said emerging-market funds remain underexposed to China's localization trade and favor exporters tied to the US AI capital expenditure cycle. Morgan Stanley countered that AI sovereignty and semiconductor localization remain structural opportunities regardless of the upcoming US-China summit.