China’s tech giants are surging ahead of their once-dominant US counterparts, fueled by DeepSeek’s impact on demand for Chinese stocks -— a trend that many investors believe still has room to grow further. A balanced portfolio of China’s seven top technology companies, including Alibaba Group Holding and Tencent Holdings, labeled the ‘7 titans’ by Societe Generale SA, has soared by over 40% in 2025. As for the numbers, these Chinese megacaps from the technology industry have grown by $439 billion and counting. Other than Alibaba and Tencent, Societe Generale SA’s Chinese lineup includes Xiaomi, BYD Co, Semiconductor Manufacturing International Corp, JD.com Inc, and NetEase Inc; based on their market size and growth prospects.
As for America’s ‘Magnificent Seven’; the term was coined by the Bank of America analyst Michael Hartnett in the year 2023 when commenting on the seven companies commonly recognized for their market dominance, technological impact, and changes to consumer behavior and economic trends. The names are: Alphabet (Google), Amazon, Apple, Meta Platforms (Facebook parent), Microsoft, NVIDIA, and Tesla. The stocks of these US companies have slumped by about 10%, dragging the Nasdaq 100 Index to the edge of a correction, since the beginning of this year. The slump has been more pertinent since the last few weeks or we say after DeepSeek created havoc in the US stock market. This unexpected turnabout is said to have blindsided much of Wall Street.
Earlier this year, the Nasdaq hit a fresh peak, while Chinese equities languished under the weight of regulatory clampdowns and a lackluster consumer rebound. Then, seemingly overnight, DeepSeek shattered the assumption that China’s catch-up to the US AI leadership was years away -— if achievable at all.
As to what is behind the new-found rally in China’ technology stocks? As Vey-Sern Ling, managing director at Union Bancaire Privee told Bloomberg, “The ingredients for China tech to shine are in place: Robust government backing, rebounding profits, and AI as a long-term growth engine.” He added, “In contrast, U. tech’s two-year valuation run-up is hitting a wall with disappointing earnings and broader economic pressures, sparking a shift in capital from the US toward Europe and China.”
This week, China’s tech rally gained further steam as Beijing unveiled plans to bolster support for the sector, complemented by a flurry of new AI innovations from companies like Alibaba. As reported by Bloomberg, the Hang Seng China Enterprises Index, which includes most of SocGen’s highlighted stocks, jumped more than 6% this week, hitting its highest mark since late 2021. Despite the sharp rise, SocGen analysts, led by Frank Benzimra reportedly argue that the “7 titans” remain attractively priced. As per a February 28 note, the group trades at 18 times forward earnings—over 40% cheaper than the America’s Magnificent Seven.
