Woofun AI notes that Goldman Sachs analyst Louis Mille designated the Chinese AI industry as a primary focus in the "Investment Strategy: Long the Chinese AI Value Chain" report. The firm attributes this shift to massive state backing, rising global demand, and an unprecedented convergence of structural capital rotation. Goldman Sachs outlines three core arguments: a severe misalignment between current market values and total addressable market space, unique competitive advantages within the supply chain that remain undervalued, and superior sector performance relative to other Chinese assets driving structural fund allocation.