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Chinese Chip Stocks Rally to Costly Valuations, Drawing Investor Skepticism

Chinese chipmakers have surged to expensive valuations among global competitors. Market participants are reassessing their exposure. The rally intensified following diplomatic meetings between Washington and Beijing, as investors bet on improved access to advanced semiconductor technology. Shares of domestic AI developers posted substantial gains. Investors expect supply constraints could ease. However, the sharp ascent has triggered caution. Some view the rapid appreciation as excessive. Market observers warn that momentum-driven rallies warrant position reductions rather than fresh commitments. Profit-taking has emerged as traders await concrete policy signals from bilateral discussions. Institutional portfolios are increasingly focused on the sector's valuation premium relative to international peers when making risk management decisions.