The CXMT shock: how China’s viable alternatives punch Nvidia, Micron, SK Hynix shares

Advances in chips, chipmaking equipment and AI models disrupt stocks by threatening the edges of existing leaders, investors say China’s increasing clout in the global semiconductor supply chain is accelerating the unravelling of the artificial-intelligence trade, as expectations grow that the Asian nation will challenge foreign tech juggernauts by supplying the world with cheaper alternative products. The episodes add to the unwinding of the frenzy on global AI and technology stocks, which have already been taking a beating amid growing jitters over whether massive capital expenditure will generate cash flows to justify their lofty valuations. China’s advances on the technological frontier should translate to more supply of low-cost substitutes that will reshape the industry by eroding the advantages and margins of existing leaders, according to analysts. “The message for global investors is that AI is becoming a two-sided trade,” said Gary Dugan, CEO of The Global CIO Office.

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