Chinese Tech Investors Rotate to AI Hardware as JD.com Drops 10% on Revenue Decline
Updated
Updated · Yahoo Finance · Aug 14
Chinese Tech Investors Rotate to AI Hardware as JD.com Drops 10% on Revenue Decline
3 articles · Updated · Yahoo Finance · Aug 14
Summary
SMIC jumped as much as 6.4% in Hong Kong after beating earnings estimates and guiding to a stronger-than-expected gross margin, reinforcing a renewed bid for Chinese AI and hardware names.
JD.com sank more than 10% after posting its first quarterly revenue decline since its 2014 listing, while Meituan also weighed on the Hang Seng Tech Index, which fell 1.6%.
The split suggests investors are again favoring companies tied to AI hardware spending, even as internet platforms promise heavier AI investment that markets worry could pressure returns.
Tencent shares already fell after earnings despite solid advertising and gaming growth because AI spending came in higher than expected, while profit-miss pressure also hit chipmaker Hua Hong.
Meituan on Friday and Baidu on Aug. 18 are the next tests of whether money rotates back into internet stocks or stays with AI-linked hardware plays.