China’s $600 Billion Tech Stock Rout Risks Deepening on AI Costs

The ongoing selloff in China’s megacap technology stocks shows little sign of easing, as investors fret over spiraling spending amid heated competition.

The rally sparked by DeepSeek’s artificial intelligence breakthrough early last year has given way to some of the same concerns rattling US hyperscalers: soaring memory-chip costs, potential business disruption from AI and now the broader market malaise brought on by the Iran war.