AI hardware bull market slows as funds shift to Hong Kong tech giants

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AI + crypto news: The AI hardware bull market has hit a sudden slowdown, with key stocks in storage, chips, and semiconductors dropping sharply in recent weeks. Market data shows SK Hynix down 53% in 34 days, SanDisk down 47%, and Intel down 34%. Capital is shifting toward Hong Kong-listed tech leaders such as Xiaomi (up 46%), Meituan (up 36%), and JD.com (up 28%). Southbound funds into Hong Kong reached $111 billion since July 1, with $466 billion in net inflows year-to-date. Foreign investors net sold 12.1 trillion KRW on the KOSPI and 33.81 billion KRW on the KOSDAQ in July.
ME AI Update: The current AI hardware bull market has hit a sudden brake amid widespread enthusiasm. Over the past month, previously strong sectors—including storage, chips, and semiconductor equipment—have collectively pulled back, as concerns grow over AI capital expenditure returns, overvalued valuations, and competition from China’s supply chain. Capital is shifting toward Hong Kong-listed platform leaders and undervalued “old-economy” stocks. Based on performance over the past month, leading AI stocks have seen significant declines: · SK Hynix (Korea): down ~53% in 34 days · SanDisk (US): down ~47% · Intel (US): down ~34% · Samsung Electronics (Korea): down ~32% · Micron Technology (US): down ~28% Meanwhile, select Hong Kong-listed “old-economy” stocks have continued to strengthen, with capital flowing back into established platform assets such as Tencent, Meituan, Xiaomi, Alibaba, and JD.com: · Xiaomi Corp: up ~46% · Meituan: up ~36% · JD.com: up ~28% · Alibaba: up ~22% · Tencent Holdings: up ~11% Data from the Korea Exchange shows that, as of mid-July, foreign investors net sold ₩12.1 trillion on the KOSPI Main Board and ₩338.1 billion on the KOSDAQ. In contrast, southbound funds continue to flow into Hong Kong equities. According to Morgan Stanley, between July 16 and 22, southbound funds net流入 HK$1.6 billion into Hong Kong stocks; since July, cumulative net inflows have reached $11.1 billion, with a total of $46.6 billion net inflows year-to-date. As the crowded trade in AI hardware fades, capital is rotating out of high-volatility Korean semiconductor stocks and into Hong Kong’s internet leaders, dividend-paying assets, and undervalued core equities. Market participants believe that as AI-related trading enters a de-leveraging and valuation correction phase, investors are increasingly favoring assets with clear profit pathways and room for valuation recovery. In the short term, Hong Kong’s internet leaders, dividend stocks, and traditional core equities are absorbing part of the returning risk appetite. (Source: BlockBeats)
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