Zheng Quan Shi Bao·2025-08-08 07:48Core Viewpoint - The significant drop in technology stocks in the A-share and Hong Kong markets, particularly in the artificial intelligence sector, was primarily triggered by the unexpected decline in SMIC's stock price, which fell over 8% in H-shares and more than 4% in A-shares [1][2]. Group 1: SMIC Performance - SMIC reported Q2 sales of $2.209 billion, a 1.7% decrease quarter-on-quarter, with an average selling price (ASP) decline of 6.4% and a 4.3% increase in sales volume [1][4]. - The company's gross margin was 20.36%, which was a year-on-year increase of 6.42 percentage points but a quarter-on-quarter decrease of 2.15 percentage points [3][4]. - Despite the Q2 performance, analysts expect an increase in customer numbers and ASP in Q3, with guidance indicating a revenue increase of 5%-7% and a gross margin of 18%-20% [1][4]. Group 2: Market Reactions - The decline in SMIC's stock has led to a widespread sell-off in AI-related stocks, including notable companies like Dingjie Zhizhi and Kingsoft Office, which experienced significant drops [1][2]. - The market is also reacting to the pressure from the recent release of GPT-5, which is perceived to have superior programming capabilities and could impact domestic AI model companies [5][6]. Group 3: Long-term Outlook - The long-term trend in artificial intelligence remains strong, with short-term fluctuations potentially presenting opportunities for companies with established performance [6]. - The Chinese government is actively promoting the "AI+" initiative, aiming to accelerate the commercialization of AI applications across various sectors, which could benefit industries such as smart cities, healthcare, and finance [6][7].