China’s AI Bets Pivot to Power, Metals as Tech Bubble Fears Grow

Chinese investors hunting for the next artificial intelligence winners are looking beyond high-flying chipmakers to the utilities and metal producers that form the industry’s physical backbone.

The shift toward the sector’s supply chain — from power generators to materials used in data centers — reflects growing concern over lofty valuations in pure-play AI stocks. Analysts say firms supporting the tech ecosystem offer a more affordable entry point into this year’s hottest theme.

The pivot is already showing up in the market. An indextracking Chinese energy stocks rallied 10% in October, and is on track to beat the CSI 300 ...