Senmiao Technology Stock Plummets 40% Amid AI Collaboration Announcement

Senmiao Technology (AIHS) shares cratered 38.83% in pre-market trading following news of a partnership with Changsha Yipeng Information Technology to develop an AI-powered data management system for ride-hailing platforms. The sell-off extends yesterday''s 10.43% decline, bringing year-to-date losses to 3.74%.

Volume surged to 9 million shares—six times the three-month average—as investors rejected the proposed collaboration. The companies plan to combine Senmiao''s ride-hailing data with Yipeng''s AI expertise, seeking external financing for system development.

Market reaction suggests skepticism about the venture''s potential, despite the growing institutional interest in AI applications across sectors. The plunge highlights the risks of speculative tech plays in volatile market conditions.