China Tech Stocks Eye Seasonal Boost as AI Hardware Cycle Builds

Chinese equities are approaching the season traditionally known as “Golden September and Silver October,” when trading and consumer activity are expected to strengthen. Taichung Bank Securities Investment Trust said the expansion of generative AI into smartphones and AI PCs, alongside China’s push to develop AI computing chips and advanced packaging, could support a new replacement cycle across the technology and semiconductor supply chains.

The Taiwan-based asset manager said its analysis of the past 20 years showed that entering China’s information-technology and semiconductor sectors in August produced positive subsequent returns 75% of the time. The historical pattern has raised expectations for this year’s September-October market, though performance will depend on faster adoption of AI-enabled devices and continued Chinese investment in domestic chips, computing capacity and advanced packaging.