- BIST10010,976-1.70%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD3,992.90-0.96%
- INTEREST36.00%-1.00
- BITCOIN78,074+0.36%
- October 30, 202615°
- BIST10010,976-1.70%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD3,992.90-0.96%
- INTEREST36.00%-1.00
- BITCOIN78,074+0.36%
- October 30, 202615°
Has China's AI bubble burst? STAR50 index falls 40% in four months
China’s STAR50 index, made up of artificial intelligence and semiconductor companies, has lost 40% of its value over the past four months, wiping out approximately $480 billion in market capitalization.
China’s STAR50 index, made up of artificial intelligence and semiconductor companies, has lost 40% of its value over the past four months, wiping out approximately $480 billion in market capitalization. Reuters reported that the sharp decline has prompted speculation that China’s artificial intelligence bubble has burst.
Dong Baozhen, a Beijing-based fund manager, told Reuters, "The stock market later turned into a speculative, crazy bull market. Now we are seeing the bubble burst," he said.
Shares in Chinese robotics company Unitree have lost half their value since its initial public offering in August. Chipmaker CXMT has lost more than a quarter of its value over the past month.
The decline has not completely ended investors’ interest in artificial intelligence. Bloomberg reported that DeepSeek, one of China’s leading artificial intelligence companies, raised $15 billion in one of the largest funding rounds in the country’s history. Huawei also secured a $2.3 billion loan from Chinese banks for artificial intelligence chips.
According to Goldman Sachs, artificial intelligence stocks account for approximately 42% of the total market capitalization of China’s stock market. In the United States, sharp declines in the shares of Alphabet, Amazon and Intel after the companies announced their earnings this week have also heightened concerns about artificial intelligence spending.
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