Trending Now - China and U.S. Compete in AI Innovation, Benefiting Key Stocks
WHO:
Anne Tse, Asia Pacific CEO at PepsiCo
Stephen Engle, interviewer at the China Development Forum
Bernstein analysts
Contemporary Amperex Technology (CATL)
Sungrow
Cambricon
Hygon
WHAT:
PepsiCo is deploying artificial intelligence across its operations in China and beyond to improve efficiency.
PepsiCo is sourcing most ingredients locally to mitigate geopolitical and cost pressures.
Bernstein predicts the U.S. will use 511 zetta floating point operations per second (ZFLOPS) of AI compute by 2035, up from the current level of 35 ZFLOPS.
China currently has 5 ZFLOPS of AI compute and added more than 500 gigawatts of power capacity last year.
If China maintains its current pace, it could reach 1,936 ZFLOPS by 2035.
Bernstein estimates China will increase AI-related spending in data centers by 32% annually through 2035, while U.S. capital expenditures will grow by 8% annually.
Bernstein has an outperform rating on CATL and Sungrow, with price targets of 530 yuan (approximately $76.96) for CATL and 260 yuan for Sungrow.
Bernstein's semiconductor picks include Cambricon and Hygon, with price targets of 2,000 yuan and 280 yuan, respectively.
WHERE:
Beijing, China (location of the China Development Forum)
China
Hong Kong
Shanghai's tech-focused STAR board
WHEN:
March 2026 (date of the China Development Forum)
March 17th, 2026 - Date of the Bernstein report
By 2035 - Future projections for AI compute and spending
WHY:
The company is addressing geopolitical and cost pressures through local sourcing and AI deployment.
The U.S. has restricted China's ability to purchase advanced chips for AI model training.
China is focusing on energy security and diversifying into renewables to support its power needs for AI development.
HOW:
China is using less powerful chips and launching cheaper AI models to counter U.S. restrictions.
China is investing in battery and grid infrastructure to support rapid growth in power generation and renewables.
(UPDATED March 23, 2026 07:28 UTC)
In a significant announcement at the China Development Forum in Beijing, PepsiCo's Asia Pacific CEO, Anne Tse, revealed that the company is deploying artificial intelligence across its operations to enhance efficiency. To tackle geopolitical and cost pressures, PepsiCo is also focusing on sourcing most of its ingredients locally. This strategy aims to strengthen the company's resilience in a challenging global landscape.
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(UPDATED March 23, 2026 05:41 UTC)
Bernstein analysts predict that by 2035, the U.S. will ramp up its AI computing power to 511 zetta floating point operations per second, a significant increase from the current 35 ZFLOPS, while China, starting from 5 ZFLOPS, could reach nearly 1,936 ZFLOPS if it maintains its growth trajectory. The report, released on March 17, highlights that China is expected to boost its AI-related spending in data centers by 32% annually, compared to an 8% annual growth in the U.S., as it focuses on energy security and diversifies into renewables to support its AI ambitions. Bernstein has also given an outperform rating to companies like Contemporary Amperex Technology and Sungrow, with price targets of 530 yuan and 260 yuan, respectively, alongside semiconductor picks Cambricon and Hygon, which have targets of 2,000 yuan and 280 yuan.