What's happened
Hong Kong-listed tech stocks have fallen over 30% from October peaks, driven by a pivot toward AI capabilities and strategic shifts by companies like JD.com. Meanwhile, AI-focused firms like CoreWeave have seen significant gains, fueled by major deals and optimistic forecasts, highlighting a volatile AI market landscape as of December 14, 2025.
What's behind the headline?
The current market dynamics reveal a clear bifurcation in the AI sector. Companies like CoreWeave are riding a wave of optimism, driven by substantial deals with industry giants like OpenAI and Microsoft, which have pushed their stock prices to all-time highs. Citi Research's raised target underscores this confidence. Conversely, firms like JD.com are facing pressure as their strategic pivots and cash-burning tactics raise concerns among investors. The decline of over 30% in Hong Kong-listed stocks reflects a reassessment of valuations amid heightened volatility. This divergence indicates that while AI remains a lucrative frontier, market participants are increasingly selective, favoring firms with proven technological advancements and lucrative partnerships. The broader implications suggest that AI investment will continue to be volatile, with winners emerging from strategic deals and technological breakthroughs, and losers from overextension or strategic missteps. Investors should watch for regulatory developments and technological delays, which could further influence market sentiment and valuations.
What the papers say
Bloomberg reports that AI stocks like CoreWeave have more than doubled in May after a major deal with OpenAI and strong earnings, with Citi Research raising its 12-month target. Meanwhile, Hong Kong-listed firms such as JD.com have seen their shares drop over 30% from October peaks, amid a market shift favoring firms with advanced AI capabilities. Bloomberg also highlights delays in Meta's large language model 'Behemoth,' reflecting ongoing challenges in AI development. The contrasting fortunes of these companies illustrate the sector's volatility, driven by technological progress, strategic partnerships, and market sentiment. Holly Williams from The Independent notes that AI-driven demand is boosting some firms' profits, but broader macroeconomic uncertainties and regulatory concerns are tempering optimism, especially for companies like Sage Group, which reported strong profits but warned of volatile macro conditions affecting future investments.
How we got here
The recent decline in Hong Kong-listed tech stocks follows a period of rapid growth and high valuations, especially for firms involved in artificial intelligence. Companies like JD.com have adopted aggressive strategies, including cash-burning to promote their food platforms, while AI-focused firms such as CoreWeave have benefited from major deals and strong investor interest. The broader market is reacting to shifts in AI investment and technological advancements, with some firms experiencing sharp declines while others soar.
Go deeper
Common question
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What are the latest AI innovations from Google and how are stocks reacting?
As artificial intelligence continues to evolve, major tech companies are making significant strides in AI technology. Recently, Google unveiled its latest AI tool, Veo 3, while CoreWeave's stock has seen remarkable growth due to rising demand for AI capabilities. This page explores these developments and their implications for the tech industry.
More on these topics
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CoreWeave, Inc. is an American artificial intelligence (AI) cloud-computing company based in Livingston, New Jersey. It specializes in providing cloud-based graphics processing unit (GPU) infrastructure to AI developers and enterprises, and also develops.