Macquarie: Now 'Best Time' to Buy Chinese AI Chip Stocks

Leading investment bank Macquarie has launched comprehensive coverage of China's rapidly expanding artificial intelligence (AI) chip sector, declaring the current period as the 'best time to buy' stocks in this domain. Among the five Chinese companies brought under the bank's research scope are Huawei, Cambricon, Hygon, Biren, and MetaX. This move is seen as a response to unique market conditions shaped by U.S. export restrictions and the Chinese government's resolute support for local technological development.

The research, led by Macquarie analyst Eugene Hsiao, focuses on companies developing AI accelerators for the Chinese domestic market. These firms have carved out a 'captive market' by filling the void created by U.S. restrictions on access to Nvidia's high-end hardware. Huawei, for instance, is heavily investing in its Ascend chip series as a direct substitute for Nvidia's A100 and H100 GPUs. According to Morgan Stanley data, Huawei is projected to capture approximately 50% of China's domestic AI chip market by 2026. Companies like MetaX and Moore Threads successfully completed initial public offerings (IPOs) in late 2025, while Biren and Iluvatar CoreX are reportedly planning their own public offerings in 2026.

These developments are fueling significant growth in China's AI chip market. Morgan Stanley forecasts that China's AI chip market will expand from $21 billion to $67 billion by 2030. U.S. export controls have compelled Chinese companies to pursue indigenous solutions, thereby accelerating the development of the domestic market. Furthermore, as of May 2026, nine AI chip products from companies including Huawei, Alibaba, and MetaX have received formal 'secure and reliable' certification from Chinese authorities, making them eligible for government procurement. This provides an additional layer of demand and assurance for local manufacturers.

China's determined steps towards technological self-sufficiency carry broad implications within the global technological and geopolitical landscape. The technology rivalry between the U.S. and China is pushing Beijing to reduce its reliance on foreign entities in critical sectors. AI chips are at the heart of this strategy, with China not only strengthening its internal AI ecosystem but also potentially reshaping the global AI compute economy in the long term.

Analysts and market expectations suggest that this momentum in China's AI chip sector is likely to continue. Macquarie's 'best time to buy' assessment is underpinned by factors such as government policy support, increasing IPO activity, and domestic demand generated by U.S. restrictions. This scenario presents an opportunity for investors to evaluate the long-term growth potential within China's technology sector. However, increased competition within the sector and potential rises in raw material costs are also risk factors that should be considered.