Nvidia’s stock plunged over 5% this week, sparking fresh concerns about the AI sector’s stability despite the company’s strong earnings. Analysts warn that Wall Street’s focus has shifted from short-term gains to long-term risks like quantum computing and revenue sustainability. With rivals like AMD making moves to challenge Nvidia’s dominance, 2026 is shaping up to be a pivotal year for AI chipmakers.
China’s AI Stars Shine Bright
Meanwhile, Hong Kong’s market is buzzing as Chinese AI firms MiniMax and Zhipu soared post-Lunar New Year. Zhipu’s shares skyrocketed 42.7% on February 20, while MiniMax jumped 14%, reflecting robust confidence in China’s AI innovation. Both companies have become darlings of investors betting on Asia’s tech future.
Global Ripples in Tech Markets
The semiconductor sector slump isn’t isolated—Broadcom also fell 3% amid the sell-off. Yet, the contrast between U.S. jitters and Asia’s optimism highlights the AI industry’s split trajectory this year. As one portfolio manager told CNBC: 'The question isn’t who’s winning now, but who’ll survive the next wave.'
