Chinese AI, Chip, and Robot Stocks Lose Up to Half Their Value

Shares of Chinese AI, chip, and robotics companies have lost up to half their value since summer, signaling a potential burst of the sector's bubble. The STAR50 index fell 40% in under four months, erasing roughly $480 billion in market capitalization. The decline follows a period of rapid growth, with the CSI300 blue-chip index dropping about 20% from June highs. Retail investors dominate the market, and companies like Unitree Robotics and CXMT have seen significant losses, with no clear trigger for the sell-off. Analysts cite high valuations, tax bills, and potential US restrictions on Chinese data center equipment as factors. While some see a buying opportunity, others warn of further declines, and the trend may hinder new capital raising for tech firms.