AI Bubble Bursts in China, Wiping $480 Billion: Is America Next?

China’s AI stock rally has collapsed, wiping out about $480 billion as the STAR50 index of AI and chip companies fell 40% from its July high. US AI stocks have taken a far smaller hit so far. The Nasdaq is about 6% below the record it set three weeks ago. This week’s Big Tech earnings will test whether that gap holds. How China’s AI Bubble Burst Analysts have pointed to stretched prices, tax bills, and the risk of US bans on Chinese data-center equipment. The damage is wide. AI stocks account for 42% of China’s market value and 57% of its trading, according to Goldman Sachs. The broader CSI 300 index of China’s biggest companies entered a bear market last week, as BeInCrypto reported.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to BeInCrypto.