In China, the AI Bubble Has Already Burst

China’s AI and semiconductor stocks have plunged, with the STAR50’s fall wiping $480 billion in value, Reuters reports. The index dropped 40% in less than four months as investors reassessed demand, high valuations and export restrictions. Unitree shares halved since listing in August, while other chip and optical component makers also slid sharply. Still, analysts disagree on whether the selloff signals a lasting downturn or creates buying opportunities. The episode reflects speculative excess, but companies and sectors face different fundamentals.