Sensetime-W shares plummeted 5.04% during intraday trading on Thursday, extending recent losses for the artificial intelligence stock.

The sharp decline comes as the AI application sector faces sustained selling pressure, with southbound funds consistently reducing their holdings of Sensetime-W. Industrial capital across the AI value chain has also been engaged in concentrated selling to lock in gains, while a broader market-led valuation correction for the sector has further suppressed investor risk appetite.

The weakness was not isolated to Sensetime-W, as the broader application software sector declined broadly during the session, amplifying the downward move for individual stocks within the sector.