HK Stock Market Move | AI hardware stocks plummeted across the board as OpenAI's revenue slowed and losses widened in the second quarter, while also pausing the training of frontier models.

AI hardware stocks have plummeted across the board. As of the time of this report, Cig Shanghai (06166) is down 9.9%, trading at HKD 91; GigaDevice Semiconductor Inc. (03986) is down 8.21%, trading at HKD 475; YOFC (06869) is down 8.48%, trading at HKD 133.8; and Zhongji Innolight (03308) is down 7.85%, trading at HKD 1127. In terms of news, it has been reported that OpenAI disclosed to investors that its revenue for the second quarter was USD 6.7 billion, an 18% increase compared to USD 5.7 billion in the first quarter, while its operating losses further widened. Additionally, OpenAI announced a pause in training its cutting-edge models and an upgrade to its internal security monitoring system. According to the companys current estimates, the additional computational costs from the monitoring system are roughly equivalent to 20% of the monitored inference computational power. It is noteworthy that as AI computing investments continue to expand, major American tech companies are gradually shifting from a "light asset, high cash flow" model to a "heavy asset, high capital expenditure" model, with a rapid increase in bond financing, raising market concerns about the sustainability of AI-related debt. Analysts point out that if the revenue growth rate for downstream large models slows and losses widen, downstream clients may cut their procurement expectations for servers, optical communication, and storage chips.