HK Stock Market Move | AI hardware stocks generally declined, with the overnight fee falling more than 6%. Meta was exposed to possible sale of computing power, causing concerns of oversupply.

AI hardware stocks generally declined, as of press time, YOFC (06869) fell by 18.09% to HK$209.2; KB LAMINATES (01888) fell by 12.96% to HK$86.3; GigaDevice Semiconductor Inc. (03986) fell by 13.13% to HK$1032; Hua Hong Grace Semiconductor (01347) fell by 10.69% to HK$192.2; Semiconductor Manufacturing International Corporation (00981) fell by 8.89% to HK$81.45. On the news front, the Philadelphia Semiconductor Index plummeted over 6% overnight, with chip and optical communication concept stocks facing fierce selling. In terms of individual stocks, Micron Technology and SanDisk both plummeted by over 10%, while Corning fell by over 13%. On July 1st, local time, there were reports that Meta is preparing to sell excess computing power to external customers, entering the cloud computing market in order to generate returns from its massive AI infrastructure investment and alleviate concerns over tech giants' large capital expenditures. Some analysts point out that from the trends of chip and optical communication concept stocks, the market seems to interpret Meta's actions as a signal of slowing capital expenditure growth in the future and a shorter duration of super trend demand. However, some Wall Street institutions believe that the market is over-interpreting this news, as Meta selling AI computing power is essentially more of a commercial outlet for its huge AI capital expenditures, rather than a sign of a slowdown in its own AI investments.