Macquarie recommends buying Chinese AI chips; see the bank favourite

Macquarie, one of Australia's largest investment banks, released a blunt report: now is the best time to buy shares from Chinese manufacturers of artificial intelligence chips. The justification combines the boom of large language models (LLMs) in the country with the concept of "token economy" — the monetization of the use of AI in business and consumer applications. The bank points out a favorite action among companies in the sector, as detailed in the original source of CNBC.

Why does Macquarie see an ideal time for Chinese AI chips?

The Macquarie report highlights that China is accelerating the development of its own LLMs, such as Baidu models, Alibaba and local startups. This movement generates massive demand for specialized AI chips, which run from training to inference. In addition, the "token economy" — in which companies charge for each processed AI query — is creating a recurring revenue cycle for infrastructure providers. With US export restrictions, Chinese manufacturers gain even more relevance on the domestic market.

What's the bank's favorite Chinese AI chip action?

Macquarie has chosen a specific manufacturer of AI chips as its favorite, although the name is not disclosed in this summary — for full details, see the original article of CNBC. The bank highlights that the company has a competitive advantage in energy efficiency and vertical integration, crucial factors to meet the demand of LLMs. For those seeking international diversification, it is worth remembering that the global AI chip industry is also expanding, as shown in Building America from AI: NVIDIA leads local chip and infrastructure production.

How does the economy of tokens drive Chinese AI chips?

The economy of tokens refers to the practice of charging for use of AI models in a granular way — each processed token generates revenue. For chip manufacturers, this means that the more companies adopt AI in their products (chatbots, assistants, data analysis), the higher the demand for hardware. In China, giants like Tencent and ByteDance are already implementing paid models, generating a stable market for AI semiconductors. Macquarie sees this movement as structural, not just cyclical.

How to invest in Chinese AI chips while in Brazil?

Investing directly in Chinese shares of AI chips requires access to markets like Hong Kong or Shanghai, through brokerage companies with international support. Alternatively, index funds (ETFs) focused on Chinese technology can offer indirect exposure. It is essential to consider geopolitical and regulatory risks — US sanctions can affect the supply chain. Macquarie, however, believes that the moment of entry is now, before global competition intensifys further.

Frequently Asked Questions About Chinese AI Chips

Is it worth investing in Chinese AI shares right now?

According to Macquarie, yes — the bank points out that the current moment offers a unique input window, driven by the structural growth of LLMs and the token economy in China.

What are the main risks of this investment?

Risks include geopolitical tensions with the US, possible new trade sanctions and volatility of the Chinese market, as well as internal competition between chip manufacturers.

Where can I read Macquarie's full report?

The original report was reported by CNBC; access the full source here for more details on the bank's favorite action and projections.