AI Sector Shakeup: Nvidia Faces Headwinds Amid Rising Competition
Nvidia's stock fell over 5% on February 26, 2026, marking its worst trading day since April 2025, as investors reassess the sustainability of AI-driven growth. Despite strong quarterly earnings, concerns about quantum computing advancements and high capital expenditures have cast doubt on the chipmaker's long-term dominance. AMD's reported deals with Meta and other major clients signal intensifying competition in AI hardware.
Hong Kong Market Defies Global Volatility
In contrast, Hong Kong-listed AI firms MiniMax and Zhipu surged 14% and 42.7% respectively on February 20, 2026, following the Lunar New Year break. Zhipu, which debuted on the Hong Kong Stock Exchange in January at HK$116.20 per share, now trades above HK$725, reflecting strong confidence in China's AI development capabilities. Analysts note this performance demonstrates resilience in Asian tech markets amid Western semiconductor sector turbulence.
Investment Patterns Shift Focus
Janus Henderson portfolio manager Richard Clode observed that markets are now prioritizing 'proof of tangible returns' over speculative AI investments. The divergence between Nvidia's retreat and Chinese firms' rally suggests geographic variations in AI adoption timelines and investor risk appetites as the industry matures.
