China Tech on the Rise! DeepSeek Sparks a New Wave, Challenging U.S. Tech Giants New Investment Opportunities Emerge in 2025

China Tech on the Rise! DeepSeek Sparks a New Wave, Challenging U.S. Tech Giants New Investment Opportunities Emerge in 2025

Amid the ongoing global AI boom, “DeepSeek”—a rising Chinese AI phenomenon—has reignited interest in China’s tech stocks, which had previously seen a slowdown. This surge has prompted investors worldwide to ask: "Is it time for Chinese tech to challenge U.S. dominance?"

U.S. Tech Giants: Strong Fundamentals, But Are They Overpriced?
According to Trawoot Luengsomboon, CEO of Jitta Wealth Asset Management, U.S. tech giants—known as the “Magnificent Seven” (Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla)—remain strong in innovation, revenue, and profits. However, he warns that current valuations are high, making them sensitive to economic data releases, Fed policy shifts, or unexpected events like DeepSeek, which once wiped out $600 billion from Nvidia’s market cap in a single day—equivalent to Thailand’s GDP!

China Tech: Undervalued with Growth Potential, But Not Without Risks
On the other hand, Chinese tech stocks are regaining investor attention, thanks to low valuations and AI-driven growth potential. Companies like Tencent, integrating DeepSeek into WeChat, along with Alibaba and BYD, are leading the charge.
However, geopolitical risks such as U.S.–China trade tensions and domestic regulatory crackdowns remain. Still, recent moves by China’s leadership—like inviting tech founders for high-level meetings—signal a more supportive stance for the sector.

Investment Strategy: Go Beyond the Hype
Trawoot advises careful evaluation of valuation, especially with the U.S. tech giants. If P/E ratios are historically high, wait for corrections or consider mid- and small-cap tech stocks that still have upside potential.
For Chinese tech, the current rebound could be an ideal entry point for those who can stomach the risks.

The "Core & Satellite" Strategy Still Works
- Core Portfolio: Stable, long-term assets like global ETFs and high-quality bonds.
- Satellite Portfolio: Higher-risk assets like U.S. and China tech stocks, capped at 10% each (or up to 15% for China if you’re more risk-tolerant).

Combine DCA with Strategic Buying on Dips
Split your investment into two buckets:
1. DCA monthly for consistency.
2. Add more during sharp tech stock pullbacks.

With many months left in 2025, investors who can spot opportunities amid volatility may find this the perfect time to reposition for the next wave of tech stock growth.