Chinese technology stocks fall as AI spending concerns weigh on sentiment

Chinese stocks ended lower on Thursday, with the Shanghai Composite falling 0.82% to 3,651.4 and the Shenzhen Component dropping 2.92% to 11,138.2. The decline reversed gains from the previous session as strong quarterly earnings from technology companies failed to lift investor confidence amid growing concerns over the global technology sector.

Technology stocks came under pressure despite strong sales and profit growth. AI chipmaker Moore Threads Technology fell as much as 13%, even after reporting an almost 1,800% annual increase in sales. Memory chipmaker Biwin Storage Technology dropped 14%, despite a profit increase of more than 500%.

The weakness followed a broader decline in global technology stocks after disappointing results from major companies such as Samsung Electronics and Alphabet raised concerns about high AI spending and expensive stock valuations. Investors are now watching upcoming earnings from Chinese technology hardware companies, including Zhongji Innolight and Victory Giant Technology, for further signs of the sector's outlook.

Among individual stocks, Cambricon Technologies fell 4.70%, Zhongji Innolight declined 8.53%, and Eoptolink Technology dropped 11.06%, reflecting continued selling pressure across China's technology sector.

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