The semiconductor and memory chip sectors opened sharply lower today, while AI application stocks bucked the trend and moved higher.
At the opening on July 2nd, the three major A-share indices weakened, with the ChiNext Index plunging over 4%, the Shanghai Composite Index down 0.82%, and the Shenzhen Component Index down 3%.
In terms of sectors, computing hardware, semiconductors, and memory chips led the declines. In contrast, the AI application sector showed strength against the broader market trend. Precious metals, coal, and pharmaceuticals also saw relative activity.
The Hong Kong market performed strongly, with the Hang Seng Tech Index rising over 2% at one point. Stocks like BYD Company Limited, Meituan, and Horizon Robotics gained over 5%.
Semiconductor Sector Plunges
Semiconductor and memory chip concept stocks opened significantly lower. Puyang Technology Co., Ltd. fell over 12%. Several stocks that had more than doubled in value this year, including Shanghai Sailing Technology Co., Ltd., Yoke Technology Co., Ltd., and Lion Microelectronics Co., Ltd., hit the daily 10% limit-down. Leading stocks such as Cambricon Technologies Corporation Limited, NAURA Technology Group Co., Ltd., and GigaDevice Semiconductor (Beijing) Inc. all dropped more than 6%.
On the news front, the Philadelphia Semiconductor Index plummeted 6% overnight. U.S. memory chip stocks like SanDisk and Micron Technology plunged over 10%, while Western Digital and Seagate Technology fell more than 5%.
AI Applications Defy Market Downturn
The AI application sector was active against the market's downward trend. Fushi Holdings surged by the 20% limit-up, while Tiandi Online Co., Ltd., Gravity Media Co., Ltd., and Tianyu Digital Entertainment Co., Ltd. were among the stocks that hit the 10% limit-up.
The catalyst for this movement was news that Meta is planning a major foray into cloud infrastructure services, intending to sell its excess AI computing resources. This news led to a broad rebound in U.S. software and internet stocks overnight, with Meta Platforms Inc. itself surging over 8%.