AI boom stokes another frenzy—now the focus is on Chinese synthetic diamonds

Diamonds from Chinese laboratories are becoming key in the AI industry

*Demand for synthetic diamonds is rising and they are being used as heat sinks for high‑performance chips.*

1. Why diamonds matter for artificial intelligence – High thermal conductivity allows cooling of microcircuits, making them denser and more powerful.

- After proving their effectiveness in tests by several Chinese manufacturers, the first commercial deliveries began.

2. Market and stock dynamics | Company | Growth last week | Current growth | Compared to CSI 300

|---------------------------|--------------|---------------------|------------------------|

| Zhecheng Huifeng Diamond Technology Co. | +51 % | ongoing | beat the index (+1 %) |

| SF Diamond Co. | +40 % | ongoing | beat the index |

- Investors are actively hunting for leaders in the AI‑equipment supply chain, from printed circuits to optical modules.

3. Outlook for new cooling materials – Diamond is seen as a reliable alternative to copper and aluminum.

- Shares of companies working with traditional materials fell:

- Aluminum Corp. of China – –25 %

- Jiangxi Copper Co. – –28 %

4. Current supply‑chain steps – SF Diamond began shipping small batches of heat sinks; overseas customers confirmed their effectiveness.

- The first production stage was carried out by Henan Liliang Diamond Co.

5. Investment focus After two or three years of active investment in “public” AI leaders, funds are now focusing on micro‑segments with:

- Strong performance

- Limited supply

- High price potential

Investors continue to analyze supply chains and look for new opportunities in the rapidly evolving segment.