Chinese hardware makers are rapidly rolling out AI-enabled smart glasses to challenge Meta’s lead, intensifying competition in a nascent wearable category that blends cameras, microphones and on-device assistants. Goldman Sachs is advising clients to look past the headline brands and focus on the supply chain—optics, sensors, batteries, displays and contract manufacturers—that could see steadier upside as adoption grows. The bank frames the opportunity as an “edge AI” upgrade cycle that benefits component makers and select internet platforms, while cautioning that export controls, data-privacy rules and uncertain monetization could temper near-term returns. Goldman’s base case favors a basket approach across Chinese and global suppliers rather than a single-brand bet, given fast-moving product cycles and pricing pressure. The firm also flags valuations and subsidy-driven demand as swing factors for 2025–26.
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