Apple China AI Deal Puts Chinese AI Hardware Stocks Back In Focus

Artificial intelligence stocks are back in focus after Apple confirmed new AI partnerships in China, putting companies like Alibaba and Baidu under a brighter spotlight. With Chinese regulators approving Apple Intelligence and related AI services, investors are reassessing which large, financially solid companies could be most exposed to this news, either through AI models, chips, or platforms. This article walks through 3 stocks from our AI Technology Sector screener that appear positively linked to the Apple China AI story, helping you evaluate which opportunities might deserve a closer look and which risks to keep on your radar.

Shengyi TechnologyLtd (SHSE:600183)

Overview: Shengyi TechnologyLtd is a long established Chinese manufacturer of high end electronic materials, supplying copper clad laminates and related substrates that sit at the heart of printed circuit boards used in AI servers, 5G gear, automotive electronics and a wide range of consumer and industrial devices.

Market Cap: CN¥370.25b

Investors watching the Apple China AI news cycle may want Shengyi TechnologyLtd on their radar because it sits closer to the physical backbone of AI hardware than many software focused stories. The company is tied into AI chips and high computing power infrastructure, and recent earnings show strong momentum with Q1 2026 revenue of CN¥8,141.46 million and net income of CN¥1,158.14 million. Profit margins of 12.7% and a high ROE of 22.6% point to solid profitability, yet the stock trades on a rich 94.2x P/E and a price above one DCF estimate, which introduces valuation risk. Add in share price volatility and funding that leans on external borrowing, and Shengyi becomes a high quality but high expectations AI materials play that warrants closer inspection.

Shengyi TechnologyLtd is riding strong profitability and AI hardware exposure, yet a 94.2x P/E suggests expectations are intense. Get the 2 key rewards and 2 important warning signs to see what might be masking the full story

Rockchip Electronics (SHSE:603893)

Overview: Rockchip Electronics is a Chinese fabless chip designer that develops artificial intelligence processors and system on chip platforms used in tablets, PCs, streaming devices, smart home products, robotics and a wide range of connected gadgets. The company focuses on AI application processors, power management and mixed signal chips, bundling its hardware with algorithms and complete solutions for consumer, industrial and automotive customers.

Operations: Rockchip Electronics generates around CN¥4.7b in revenue from large scale integrated circuits and their application solutions.

Market Cap: CN¥87.86b

The Apple China AI approvals put a spotlight on hardware enablers like Rockchip Electronics, which supplies AI processor chips and SoCs that can sit inside the devices and edge nodes feeding these ecosystems. Revenue and earnings are growing, supported by margins around 24.6% and high current and forecast ROE. However, a rich P/E and a share price well above one cash flow based estimate point to elevated expectations. In addition, an unstable dividend record, reliance on higher risk external funding and high non cash earnings make this a stock where the quality of growth matters as much as the headline numbers, especially with a key earnings release coming up in August 2026.

Rockchip Electronics has growing AI chip exposure, firm margins and an upcoming earnings date that could reset expectations. Get the 3 key rewards and 2 important warning signs (1 is major!) and see what the headline numbers might be hiding

Victory Giant Technology (HuiZhou)Ltd (SZSE:300476)

Overview: Victory Giant Technology (HuiZhou)Ltd is a Chinese manufacturer of high precision printed circuit boards that supply the core wiring layers for AI servers, cloud and data center hardware, 5G infrastructure, EVs, smart devices and medical equipment worldwide.

Operations: Victory Giant Technology (HuiZhou)Ltd generates essentially all of its CN¥19,290.83 million in revenue from PCB manufacturing, with a smaller CN¥1,208.62 million segment adjustment.

Market Cap: CN¥263.94b

Victory Giant Technology (HuiZhou)Ltd sits in the slipstream of the Apple China AI approvals because its high end PCBs are already tied into AI computing, smart devices, EVs and 5G equipment used by global tech platforms and hardware makers. The company combines recent earnings momentum, margins around 22.8% and a current ROE of roughly 26.9% with a share price that screens as good value against the CN Electronic industry and one fair value estimate. At the same time, investors need to weigh debt reliant funding, recent shareholder dilution, high non cash earnings and a relatively new management team. With analysts expecting fast revenue and earnings growth, the risk reward mix here deserves a closer look.

Victory Giant Technology (HuiZhou) Ltd pairs high precision PCB scale with margins around 22.8% and ROE near 26.9%. Yet the real story sits in how analysts frame its next phase. Read the analyst forecasts for Victory Giant Technology (HuiZhou)Ltd before one crucial assumption is fully priced in

The three AI focused stocks in this article are just the starting point. The full screener surfaces 22 more companies in the Artificial Intelligence Technology Sector that pair solid financial profiles with AI related narratives that could be just as compelling. If you want to identify the highest conviction ideas around AI models, chips and platforms, use the Artificial Intelligence (AI) Technology Sector screener to filter for the specific catalysts and storylines that matter most to your portfolio.

Take Control of Your Investment Journey

If Rockchip Electronics or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before Everyone Else?

Fresh stock ideas can attract attention quickly once momentum builds and prices start moving. Scan focused shortlists while they are still under the radar and consider them before they become widely discussed.

• Spot potential turnaround stories with strong finances by running the 218 high quality undervalued stocks before the crowd notices the gap between quality, pricing and business strength.
• Hunt for resilient companies built to weather shocks by using the 297 resilient stocks with low risk scores so you can focus on balance sheets and risk scores that still look overlooked.
• Target infrastructure-related themes by checking the 34 power grid technology and infrastructure stocks and see which grid and energy tech stocks might respond if capital begins to rotate into the area.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com