China and the US have been at a crossroads over the past year over access to advanced chips and semiconductor equipment as technological rivalry heats up. While the US has been the most aggressive, it might have to rethink its export controls amid reports that Chinese buyers have found a way around them. Therefore, gaining access to its advanced artificial intelligence chips.
In order to limit China’s access to semiconductors for training and powering cutting-edge artificial intelligence, Washington has enforced export controls since 2022. President Joe Biden’s administration issued several directives and export controls that sought to stop China from acquiring the most cutting-edge chips. In the interest of national security, it also prevented China from obtaining sophisticated semiconductor equipment.
However, according to the Wall Street Journal, a clandestine network of brokers has emerged and is increasingly circumventing the restrictions. The report indicates that Chinese buyers might have the upper hand on routing advanced chips through third parties. The report further indicates that six AI servers with restricted Hopper chips have been delivered to at least two Chinese universities in Shenzhen and Wuhan since December.
Singapore’s government has already charged three men in a case that involves the sale of semiconductors that may violate US export laws. “We will not tolerate individuals and companies violating our laws or taking advantage of their association with Singapore to circumvent export controls of other countries,” Home Affairs Minister K Shanmugam told a press briefing.
As it stands, the new administration under President Donald Trump faces an uphill task of finding ways to curb access to advanced technologies through third parties as the technological rivalry heats up. In a research note to investors, analysts at Jefferies reiterated that the US could tighten chip export controls, a development that could escalate the US-China tech war.
The analysts said that Trump has specifically instructed them to use export controls to close any gaps in existing regulations and guarantee and improve the U.S. technological edge. According to Jefferies, this sets the stage for the United States to impose more stringent export regulations on China.
The push for stringent and aggressive restrictions comes as China changes its approach from employing symbolic legal and regulatory changes to investing in advanced technologies. According to an analysis at the Emerging Technology Observatory (ETO), China is currently producing the majority of the fundamental research that may support future computer hardware. If those efforts become commercially viable, the US may soon be unable to use export restrictions to maintain its competitive edge in the design and manufacturing of high-performance microchips.
By doing this, Beijing is indicating that it has taken the time to assess its own economic advantages, disadvantages, and vulnerability to US sanctions and is now more assured of its ability to compete on an equal footing with the US. There are some distinctive features to China’s strategy, such as the establishment of an economic early-warning system, even though some of it can be viewed as mimicking US export restrictions against Chinese tech firms.
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10. Aurora Mobile Limited (NASDAQ:JG)
Number of Hedge Fund Holders: 1
Aurora Mobile Limited (NASDAQ:JG) is a software infrastructure company that provides customer engagement and marketing technology services. The company utilizes artificial intelligence and machine learning to gain actionable and practical insights from its data and refine its data solutions. On March 3, the company affirmed plans to enhance artificial intelligence innovation in the Middle East, through its enterprise AI agent platform, GPTBots.ai, on strengthening its collaboration with Qatar Science and Technology Park.
Aurora Mobile Limited’s (NASDAQ:JG) partnership with Qatar Science & Technology Park (QSTP) underscores its dedication to advancing AI technology in the MENA region. By integrating DeepSeek into GPTBots.ai, the platform now offers more affordable and accessible AI solutions for Middle Eastern enterprises. This enhancement, coupled with GPTBots.ai’s no-code platform, enables rapid and localized AI application deployment across industries, potentially expanding the customer base and driving revenue growth.
9. Gorilla Technology Group (NASDAQ:GRRR)
Number of Hedge Fund Holders: 4
Gorilla Technology Group (NASDAQ:GRRR) provides security, network, business intelligence, and Internet of Things (IoT) technology solutions. It also offers intelligent video analytics AI model solutions to scan video for patterns and distinguish specific items using AI algorithms and metadata. On March 3, the company confirmed the signing of a $1.8 billion agreement to leverage artificial intelligence solutions to spearhead Thailand’s largest-ever energy digitization and infrastructure transformation initiative.
The digitization drive seeks to establish a new international standard for AI-driven modernization as Thailand starts a national energy revolution. Under Gorilla Technology Group’s (NASDAQ:GRRR) direction, the initiative will combine automation, data-driven intelligence, and cutting-edge technology to build a more intelligent and robust energy ecosystem. The deal places Gorilla at the nexus of three crucial technological areas: advanced energy management, cybersecurity for vital national assets, and AI-based grid infrastructure.
“This agreement represents a defining moment for Gorilla Technology and for Thailand’s energy sector. By combining our AI and advanced analytics expertise with the country’s vision for the future, we are embarking on a transformative journey that will reshape how energy is distributed and consumed across the nation,” Viraphan Paiboolsilp, Technology Specialist, stated.