DeepSeek IPO Remains Far Off—Investors Eye 4 Chinese AI Stocks
The introduction of the cutting-edge, chip-efficient AI chat model DeepSeek sent markets into a frenzy in late January, sparking an American AI sell-off. Featuring twice the computing power at a fraction of the cost of models like ChatGPT, the introduction of DeepSeek was particularly painful for chip manufacturer NVIDIA Co. (NASDAQ: NVDA), whose shares fell more than 14% on the date of DeepSeek’s introduction.
While a DeepSeek IPO isn’t currently on the calendar, investors are turning their attention to other hidden Chinese AI picks before they boom onto the global scene. These four top Chinese tech stocks provide you with access to developing AI technology without waiting for DeepSeek to go public.
Qifu Technology Combines Fintech With AI
Credit-driven service provider Qifu Technology (NASDAQ: QFIN), one of the leading providers of online credit services to the Chinese market, has seen a spike in investor interest after posting higher-than-expected earnings in late 2024.
Levering credit data and AI advancements, QFIN is in a unique position to rally. The company recently upgraded its AI co-pilot system, achieving an accuracy rate of 98.8% in key information extraction for loan collection. It also offers a solid dividend yield of 2.67%, with an annualized three-year dividend growth rate of 61.53%.
While analysts give Qifu Technology a Buy rating, there are signs that the most recent Chinese AI rally has caused the stock to be temporarily overvalued based on fundamentals. Analysts predict an estimated one-year 15.27% downside from its current price of about $44 per share. Short interest increased by 2.9% since last month, though only 1.80% of shares were shorted in February of 2025.
Searching for AI Breakthroughs With Baidu
If you’ve never heard of Baidu Search, you might become familiar with it soon through American news headlines. Internet service provider Baidu (NASDAQ: BIDU) recently announced that it will be offering its ChatGPT-style Ernie AI chatbot for free beginning in April 2025, previously requiring a paid subscription. The next generation of its AI model will be released in June, according to a post made on the company’s official WeChat channel.
Analyst forecasts for Baidu remain optimistic despite an average Hold rating, with a potential 14.98% upside. Short interest is down 2.56%, and its P/E ratio is about half the industry average at 11.93. This could indicate that now is an opportunistic time to get in on Baidu before the next generation of its AI chatbot is released.
PDD Hunts eCommerce AI Advancements
Best known as the parent company behind TikTok-favorite shopping platform Temu, PDD Holdings (NASDAQ: PDD) is focusing on optimizing online shopping through AI with sudden, positive initial results. It posted earnings over $20 per share above expert estimates, driving a steady upward trend in stock prices since January 2025, continuing into February.
Expert estimates for PDD also indicate investor confidence, with a Moderate Buy rating on average. It holds a consensus price target of $173.40 per share, representing a 39.66% potential upside. If you’re interested in investing in companies like Amazon.com (NASDAQ: AMZN) with an AI edge, PDD Holdings could be a strong long-term play.
Alibaba Continues to Dominate Chinese AI Interest
No list of AI innovators is complete without mention of internet and e-commerce giant Alibaba Group (NYSE: BABA). AI investor interest in the stock surged on Valentine’s Day when Apple (NASDAQ: AAPL) unveiled that it had selected Alibaba’s AI for its next mobile phone update. Apple’s selection of Alibaba is a nod to its unique model, beating out other Chinese AI superstars like DeepSeek and ByteDance for the contract.
Investment analysts remain cautious of BABA’s pricing, even in light of this announcement. It maintains a consensus price estimate of $115.86 per share, representing a decrease in price of about 7% from its current share price of $124.73. Recent short interest continues this trend, with an 18.34% increase in share interest since the last month.
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