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The sharp correction reflects growing global concern over whether heavy spending on AI infrastructure can be sustained. Photo: VCG
A worldwide sell-off in technology shares has reversed the rally in Chinese AI and semiconductor stocks, hurting mutual funds that had piled into the sector and exposing risks in crowded bets on AI infrastructure spending
China's STAR 50 Index crashed 30% (peak 2,255→1,588), with $14.8B outflow from semiconductor and AI stocks in three days. Market skepticism on AI capex sustainability reshapes enterprise spend—signals potential consolidation in infrastructure and foundation models.
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The sharp correction reflects growing global concern over whether heavy spending on AI infrastructure can be sustained. Photo: VCG

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