China’s Tech Rally Stalls as AI Hopes Cool Amid Earnings Reality Check

Alibaba’s sliding shares have cast a shadow over China’s artificial intelligence ambitions, with JD.com and Tencent also failing to sustain momentum despite posting their strongest revenue growth since pandemic peaks. The Hangzhou-based conglomerate’s 4% weekly decline mirrors broader tech sector weakness as investors reassess valuations.

"Market expectations had sprinted ahead of on-the-ground realities," said Saxo Markets strategist Charu Chanana, noting the disconnect between AI HYPE and monetization timelines. China’s consumer spending slowdown compounds the challenge for tech giants navigating a transitional phase.

The earnings season revealed fragile domestic demand persists even as companies demonstrate operational efficiency. Tencent’s 7% revenue beat failed to prevent a 2% stock dip, while JD.com’s 7.6% sales growth coincided with a 3% share price retreat - signaling investor skepticism about sustainable growth catalysts.