Mind the gap !

The AI theme is not only an American story. What is striking is the valuation gap. Alibaba trades around 16x forward earnings, versus roughly 27x for Amazon. Baidu and Tencent trade in the low teens, despite owning large-scale search, cloud, social, gaming, e-commerce and AI assets in the world’s second-largest economy.
This discount is not irrational. China remains under pressure economically, the geopolitical overhang is real, and access for some international investors is more complicated. The market is therefore not simply “missing” the opportunity. It is pricing risk.
But for portfolios already heavily exposed to expensive US technology and AI winners, this gap matters. Chinese technology offers exposure to the same secular theme, but at valuations that leave more room for error. The point is not to choose one geography against the other. It is to avoid betting the whole portfolio on one market, one region and one narrative being priced to perfection.