As AI gradually enters the reasoning era, market rotation signals are emerging, and the China Robot Sector may become the NEW FOCUS AUTO.

On February 12 local time, Goldman Sachs partner and managing director Mark Wilson published an article stating that investment opportunities in AI are shifting from the infrastructure level to the application level, and investment horizons should break free from the limitations of Mag7 and US Technology Stocks, such as the China Robot Sector.

Mark Wilson pointed out that in the past year, the Chinese robot stock portfolio has soared by 39%, while the US robot stock portfolio has only increased by a cumulative 3% during the same period.

The following is a translated full text, with some omissions by Wall Street Insight:

The report I released this weekend discusses news overload in the post-election era, the market's resilience to headline shocks (whether from DeepSeek or tariff policies—although we gradually realize that tariff actions will not 'end all at once', but are a continuous policy tool), the far greater-than-expected Q4 Earnings Reports season, last week's investors' strong interest in the possibility of a pause in the Russia-Ukraine conflict, and the significance of Lagarde/Von der Leyen's blog ahead of Germany's upcoming key election.

However, the above content was ultimately deleted for reasons including: the relevant issues have been widely covered; the themes discussed below are more scarce; recent trips to the USA indicate that reverse investment opportunities in European stock markets are weakening; and the need for this article to remain concise.

Currently, AI remains the dominant investment theme, but investment opportunities are shifting from infrastructure to application layers. As one viewpoint states, 'The infrastructure race is over, and the application race is just beginning.' With the widespread implementation of AI applications, the market breadth is expected to expand accordingly.

Recently, only one Chinese topic, DeepSeek, has attracted mainstream attention. However, numerous headlines have emerged in the field of innovation in China over the past 30 days:

1. China Spacesat surpasses Musk's Starlink technology, achieving a record 100Gbps data transmission rate using laser communication.
2. ByteDance has launched the 'OmniHuman' technology, which enables photo subjects to converse and sing.
3. China's new high-speed train has tested speeds exceeding 450 kilometers per hour, setting a new world record.
4. China has been approved to build the world's largest hydropower station project, with a total investment of 137 billion US dollars.
5. China's 'artificial sun' nuclear fusion device has achieved running at a high temperature of 0.1 billion degrees Celsius for over 1,000 seconds.
6. After the TikTok ban, Xiaohongshu topped the download charts in the US app store.
7. China's Lithium reserves have surpassed those of Australia, rising to second place globally.

Although Meta has set a record for the longest consecutive days of gains in the history of the S&P 500 Top 50 component stocks (17 days), the trend dominating the Global stock market in recent years, "Mag7 vs Other Assets," is facing a test.

Since the stock market bottomed out in November 2022, the relative strength of the Mag7 (compared to the MSCI Global Index) has shown signs of fatigue for the first time: the relative advantage of the S&P 500 Equal Weight Index peaked last July.

Microsoft's relative strength also peaked in November 2023.

In contrast, the Chinese market has seen the Hang Seng TECH Index rise by 18% this year (yellow line), the Goldman Sachs China AI Beneficiary Stocks portfolio (white line) increase by 23%, and the China Siasun Robot&Automation Stocks portfolio (blue line) surge by 39%, compared to only 3% for the USA Robot portfolio.

It should be noted that the risk-return profile of the China Robotics Sector cannot be directly compared to that of Mag7, but as AI applications accelerate penetration before 2025, investment perspectives should break through the limitations of Mag7 and USA technology stocks (If there is a market theory framework similar to the 'Overton Window', please feel free to share).

For investors focused on China, the current timing is advantageous:

Goldman Sachs main broker data shows that long positions are at the 6th percentile of a five-year Range, and swap trades still present significant excess return opportunities.

Supplementary Highlights on China Themes

1. New Record in the Film Market: The animated blockbuster 'Ne Zha 2' achieved over 1 billion dollars in box office revenue in China within 10 days of its release. According to Maoyan data, this sequel, which opened during the Spring Festival, has accumulated a total revenue of 7.7 billion yuan as of Sunday, surpassing 'Star Wars: The Force Awakens' at 0.9367 billion dollars in North America, setting a new record for the highest box office in a single market in film history!

2. Financial stocks are diverging: Although the Chinese/emerging market leveraged bank stocks HSBC and Standard Chartered listed in London have performed well recently, PRU, also listed in London, remains limited by the declining yields in China and is at a low position. There are good investment opportunities for contrarian micro investors here.