"Six Walnuts" Diversifies into AI Investment, Stock Price Triples in One Year
"Six Walnuts," a popular Chinese beverage brand under Yangyuan Food and Beverage, has pivoted aggressively into AI and semiconductor investments. Despite its core walnut milk drink business facing sustained decline—with revenues shrinking 41% over a decade—the parent company has channeled nearly all its annual profits for three consecutive years into a 40 billion yuan investment fund targeting AI hardware, chips, and storage. This bold move has transformed the firm into an AI-themed stock, propelling its share price up nearly 300% in one year, even as consumer stocks broadly struggled.
A key bet is a 1.6 billion yuan investment in memory chipmaker Yangtze Memory, whose potential IPO could deliver substantial returns. Other investments span AI vision, edge AI chips, and GPUs, though many remain unrealized or at a paper loss. While maintaining its beverage base, Yangyuan is pursuing a dual-track strategy: steady income from its traditional business and high-risk, high-reward exposure to hard tech. Its future valuation now heavily depends on the success of these tech investments, particularly Yangtze Memory's listing. Failure could lead to significant market correction as AI expectations unwind.
marsbit06/24 03:06
