US AI Stocks Face Structural Power Cost Disadvantage Versus China, Analysts Warn of Valuation Collapse

US artificial intelligence firms face a structural electricity cost disadvantage against Chinese rivals that could trigger sharp valuation declines, analysts told OilPrice.com on September 22, 2026. Chinese AI players achieve roughly 90% of US competitor performance at about 10% of the cost, according to Mehrdad Emadi of Betamatrix. The disparity stems from grid architecture. China's State Grid operates 800-1,100 kV ultra-high voltage direct current lines capable of moving 12 gigawatts over 3,000 kilometers with near-zero loss. The US grid is fragmented into three interconnections relying on 345-500 kV alternating current trunk lines. Goldman Sachs forecasts US data center demand rising from 42 GW to 118-134 GW by 2030. Gas turbine backlogs stretch to seven years with prices tripling. Emadi warned private credit exposure could amplify a selloff, predicting 35-50% of US AI sector valuation could vanish rapidly.