A top-performing fund managed by T. Rowe Price is intensifying its focus on midstream and downstream enterprises within the Greater China AI supply chain, betting that the region's investment cycle still has room to catch up with global momentum. The firm is channeling capital into manufacturers poised to benefit from bottlenecks in the AI supply chain, spanning product categories such as printed circuit boards (PCBs), chip equipment, and power components.

Agnes Ng, an investment specialist at the firm, pointed out that these companies are often absent from benchmark indices. Despite the overall sluggishness in the Chinese equity market, the AI investment cycle continues to generate winners. The China Evolution Equity Fund, which manages $735 million in assets, counts PCB makers like Unimicron, Wus Printed Circuit, and Shengyi Technology among its primary holdings.

The fund has delivered a return exceeding 25% year-to-date, a stark contrast to the MSCI China Index, which has declined by 7% over the same period. As of the end of August, the fund ranked in the top 6% of its Morningstar China equity category over a three-year horizon.