APPLE BOOSTS UNDERVALUED CHINESE AI STOCKS — WHAT PRUDENT INVESTORS NEED TO KNOW ABOUT THE OPPORTUNITY
By Nigam Arora
China internet ETF KWEB has moved up nicely since the last post. Going forward, there are four positive factors:
- In The Arora Report analysis, Chinese AI stocks are relatively inexpensive compared to U.S. AI stocks.
- Chinese models are cheaper than U.S. models. For some tasks, Chinese models are up to 80% cheaper than the U.S. models. Barring interventions by governments, Chinese models are likely to gain market share.
- Chinese AI stocks are getting a boost from Apple’s (AAPL) decision to use Alibaba’s (BABA) Qwen large language model along with AI technology from Baidu (BIDU). Both BIDU and BABA are in ETF KWEB.
July 17, 2026