UBS gave a benchmarking list: Cambrian vs. NVIDIA, Xiaomi vs. Tesla, SMIC vs. TSMC ...

CAMBRIAN and NVIDIA "played tricks", Xiaomi and Ideal Benchmarking Tesla, SMIC and TSMC "beat" ... UBS gave a benchmarking list of Chinese and American technology stocks in the latest research report.

With the release of R1 model of DeepSeek, the development of AI in China has once again become the focus of investors' attention. According to the report of James Wang team of UBS on 12th, since the beginning of the year, AI-related China listed stocks have risen by 15% on average, outperforming MSCI China Index by 9%. Considering the current abundant liquidity and low interest rate, UBS believes that there are opportunities for valuation revaluation of AI-related stocks.

UBS said that the valuation of Cambrian was three times higher than that of NVIDIA, Xiaomi and Ideal were 80% and 90% lower than Tesla respectively, and SMIC was 15% lower than TSMC.

The report also mentioned that the development of the AI industry usually promotes the valuation of related stocks. In the past 4G, 5G and cloud computing times, the performance of related stocks was better than the market by 50% to 100%, and this rebound usually lasted for one to two years. UBS believes that the current AI-related market rebound may not be more than half, especially for software stocks, and there is still much room for valuation improvement in the future.

AI enterprise benchmarking: the competitiveness of China enterprises

In this report, UBS listed a series of benchmarks of AI-related enterprises in detail, and made a valuation comparison. This list covers hardware, software, Internet, automobiles and other fields, and some of the comparisons are particularly striking:

CAMBRIAN: As a leading AI chip manufacturer in China, CAMBRIAN has been compared with NVIDIA in UBS's benchmarking list. The valuation of Cambrian is 312% higher than that of NVIDIA.

Xiaomi: Xiaomi is developing rapidly in the fields of intelligent hardware and AI. In UBS's list, Xiaomi is compared with Tesla. Although Xiaomi's valuation is 80% lower than Tesla's, its potential in intelligent hardware and AI ecology should not be underestimated.

LI: As one of the representatives of new energy vehicles in China, LI is in comparison with Tesla. LI's valuation is 90% lower than Tesla's, which shows the market's expectation for its future development.

SMIC: SMIC is on the list of UBS against TSMC. The valuation of SMIC is 15% lower than that of TSMC, and its status and technological progress have become an important force in the field of AI chip manufacturing.

The detailed chart is as follows:

Source: UBS, the sinicization of Wall Street.

The outlet of a new wave of science and technology

The report pointed out that although AI accounts for a limited proportion of most companies' revenue, the rapid development and application of AI technology will promote the valuation of related companies. UBS believes that infrastructure providers (such as IDC and hardware manufacturers) will gain revenue from AI applications at the earliest, because AI users (such as cloud service providers) are eager to build an ecosystem, even at the expense of profitability.

UBS is optimistic about software stocks and believes that it is expected to usher in a significant revaluation in the next few years:

"According to the experience of 2019-2020 (cloud computing) and 2023 (AI), the valuation revaluation of software companies is the most significant, and the P/S ratio has increased by 4-14 times during the period. Compared with the broader market, the current trading price of software stocks is still 53% lower than the peak in early 2021 and 38% lower than the peak in 2023. "

In addition, UBS also mentioned that the development of AI technology will promote changes in many industries, including the Internet, finance, medical care, automobiles and other fields. For example, AI technology will help Internet companies optimize advertising technology and enhance the user experience; Financial institutions will reduce costs and improve efficiency through AI technology; The medical industry will use AI technology to accelerate drug research and development and improve diagnostic accuracy.

Risk warning and exemption clause

The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.