UBS says that despite recent market volatility increasing, European investors still have confidence in China’s artificial intelligence technology sector. Some investors took profits in recent weeks, but overall they remain firmly committed to their long-term view. The firm also found that European investors’ interest in Chinese biotech companies is unexpectedly strong, suggesting they are looking for innovative areas within China that have yet to be more deeply explored. Wang Zonghao, a UBS China equity strategist, said that compared with the firm’s prior survey, European investors now have a more comprehensive understanding of China’s AI supply chain, although there is still significant room to further deepen penetration. Investors overall prefer segments in the AI supply chain with higher entry barriers and higher quality, rather than cyclical targets that benefit from short-term supply shortages. At the same time, they appear to be more optimistic about some Chinese semiconductor equipment companies.