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 index tracking Chinese energy stocks rallied 10% in October, and is on track to beat the CSI 300 Index for a second straight month. Seven of the top 10 gainers on the benchmark in the past month are tied to AI infrastructure.

“No power, no AI,” BofA Securities a

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