AI concept stocks fell across the board. As of press time, Kingsoft Software (03888) dropped 4.37% to HKD 31.94; Huahong Semiconductor (01347) declined 4.09% to HKD 72.7.
According to Zhitong Finance APP, all AI concept stocks declined. As of press time, Kingsoft Software (03888) fell by 4.37%, trading at HKD 31.94; Huahong Semiconductor (01347) dropped by 4.09%, trading at HKD 72.7; Alibaba-W (09988) decreased by 2.58%, trading at HKD 155.1.
In terms of market sentiment, concerns over high valuations in AI have intensified, with a sell-off in U.S. technology stocks overnight. Reports indicate that Michael Burry, the investor known for his role in the movie 'The Big Short,' is aggressively shorting NVIDIA and Palantir. The notional value of his put options on these two stocks exceeds USD 1 billion, accounting for 80% of his portfolio. Previously, he issued an implicit warning to retail investors about market exuberance.
A recent research report from Dongwu Securities pointed out that overseas markets have been continuously worried about the combination of an AI bubble in U.S. equities and divergent performances in tech giants’ earnings reports. For instance, Google’s cloud computing and search businesses exceeded expectations, validating the claim that AI tools are driving an increase in ad revenue share for tech giants. In contrast, although Meta reported better-than-expected revenue, its significantly accelerated Capex raised concerns about potential profit erosion. This sentiment spilled over into Hong Kong-listed stocks, where investors adopted a wait-and-see attitude towards the tech sector. The brokerage believes that while U.S. tech leaders may influence the trading rhythm of Hong Kong-listed AI tech stocks, current valuations in Hong Kong's tech sector remain attractive in the medium to long term. Considering that internal competition among tech giants is nearing an end, the brokerage expects Hong Kong-listed EPS to marginally improve in the first quarter of next year.