Goldman Sachs analysts have highlighted a new era for China's artificial intelligence-related hardware exports, identifying companies that are set to become significant global players. The investment bank's research indicates substantial market opportunities for these firms, with potential market sizes ranging from $12 billion to $212 billion by 2030.
Amidst evolving international trade dynamics and U.S. restrictions on high-tech imports, Chinese AI hardware exporters are increasingly turning their focus to markets in Europe and Southeast Asia. While many companies are capitalizing on overseas product shortages, Goldman Sachs emphasizes industrial automation and robotics as key sectors where strategic execution is paramount, even more so than broader macroeconomic trends.
The analysts noted that strong product and technological competitiveness, rapid research and development iteration, and cost-efficiency are critical factors positioning these companies for long-term success. Their top picks in this burgeoning sector include Hong Kong-listed industrial robotics firm Estun and Shenzhen-based automation company Inovance.
Europe represents a highly strategic market for Inovance. Goldman Sachs projects that the company's total addressable market outside of China could more than triple by 2030 from its current $163 billion. The firm has a 'buy' rating on Inovance, with a price target of 92.90 yuan ($13.78), suggesting an upside of over 50% from its recent closing price.
Estun is set to benefit from expansion in Southeast Asia, mirroring the growth of its Chinese manufacturing clients in the region. Goldman Sachs estimates Estun's market share in Southeast Asia could more than triple to approximately 10% by 2030, up from 3% this year, within a total addressable market outside China estimated at $20 billion. Despite Estun being in the early stages of its international expansion and still trailing global competitors in service coverage and software ecosystems, its rapid deployment capabilities position it as a competitive force in Southeast Asia.
Currently, Goldman Sachs analysts hold a 'neutral' rating on Estun, with a price target of 11.80 Hong Kong dollars ($1.50). China is also gearing up to host the World Robot Conference in Beijing from August 19 to 23, highlighting the nation's growing prominence in the robotics and AI sectors.
