{"id":530844,"date":"2026-07-03T09:21:13","date_gmt":"2026-07-03T09:21:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/530844\/"},"modified":"2026-07-03T09:21:13","modified_gmt":"2026-07-03T09:21:13","slug":"chinas-ai-stocks-surge-65-in-first-half-but-bubble-fears-begin-to-weigh-on-sentiment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/530844\/","title":{"rendered":"China\u2019s AI stocks surge 65% in first half but bubble fears begin to weigh on sentiment"},"content":{"rendered":"<p>China\u2019s artificial intelligence stocks entered the second half of 2026 with improving earnings momentum, but first-half results and high-profile bearish positioning by US investors regarding <a rel=\"nofollow noopener\" target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/sc.mp\/ozlop?utm_source=copy-link&amp;utm_campaign=3358114&amp;utm_medium=share_widget\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\">the global AI trade<\/a> have begun to weigh on sentiment.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cIt is only a matter of time now,\u201d said Michael Burry, the US hedge fund manager, in a post on Substack on Tuesday. Burry, who famously shorted the American housing market before the 2008 financial crisis and whose story was later popularised in the 2015 film The Big Short, warned of what he sees as stretched valuations in AI-related markets.<\/p>\n<p>Burry said he had expanded his bearish positions across US-listed AI-linked assets, including <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/nvidia?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">Nvidia<\/a>, <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/tesla?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">Tesla<\/a>, Applied Materials, the iShares Semiconductor ETF (SOXX), and Caterpillar, citing concerns about elevated semiconductor valuations and the sustainability of the current investment cycle.His comments added to a growing wave of <a rel=\"nofollow noopener\" target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/sc.mp\/93yjy?display=plus\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\">scepticism towards the global AI trade<\/a>, as investors reassess whether record capital outlays across the sector would translate into durable earnings growth during the ongoing first-half earnings season.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Meanwhile, China\u2019s technology sector showed a strong rally in the first half of the year. The SSE Star 50 index surged roughly 65 per cent during the January-to-June period, marking one of its strongest half-year performances on record, driven by gains in semiconductors, optical modules and AI infrastructure names.<\/p>\n<p>Within the chip sector, <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/cambricon-technologies-corporation?module=inline&amp;pgtype=article?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">Cambricon Technologies<\/a> briefly crossed the 1 trillion yuan (US$147 billion) market capitalisation threshold, while Hygon and Moore Threads reported sharp revenue acceleration, underscoring robust domestic demand for AI chips and related computing infrastructure.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s artificial intelligence stocks entered the second half of 2026 with improving earnings momentum, but first-half results and&hellip;\n","protected":false},"author":2,"featured_media":530845,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,15038,225962,218,219,6158,114,225961,225963,45224,240,61,60,74497,2395,233,72061,91632,80,37660],"class_list":["post-530844","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-hardware","tag-american-housing-market","tag-artificial-intelligence","tag-artificialintelligence","tag-cambricon-technologies","tag-china","tag-china-equity-strategist","tag-csi","tag-hang-seng-tech-index","tag-hong-kong","tag-ie","tag-ireland","tag-michael-burry","tag-morgan-stanley","tag-nvidia","tag-shanghai-composite","tag-substack","tag-technology","tag-ubs"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/530844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=530844"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/530844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/530845"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=530844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=530844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=530844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}