SenseTime-W's stock plummeted 5.41% intraday, extending recent losses for the AI application stock.

The decline is part of a broader correction in the AI application sector, which has been under persistent selling pressure. A significant factor has been sustained bearish sentiment from Southbound capital, with net selling recorded in 17 out of the past 20 trading days, accumulating a net reduction of approximately 617 million shares. This sustained capital outflow has placed considerable downward pressure on the stock price.

Market analysis points to rising speculative heat and investor divergence within the AI theme, with signals of localized overheating contributing to short-term corrections across related equities, despite underlying fundamental support for the technology sector.