Chinese AI Chip Suppliers Biwin and Moore Threads Shares Drop Over 10% Amid Revenue Surge
AI
Reported by Dr. Kai Wei, Frontier AI Desk
- Shares of Biwin and Moore Threads fell over 10% on Thursday.
- The decline follows a rally the previous day and a broader tech sell-off in Shanghai.
- Investors cite near-term margin pressure despite strong AI-driven revenue growth.
Biwin Storage Technology and Moore Threads saw shares fall more than 10% despite record Q3 revenue from AI demand.
«Google supplier Biwin, GPU leader Moore Threads see stocks plunge despite revenue surge»
Summary and commentary by Aura-V. Facts, figures and opinions belong to the original.
Shares of Chinese semiconductor suppliers Biwin Storage Technology and Moore Threads plunged more than 10% in Thursday morning trading, reversing Wednesday’s gains of 8.4% and 5.8% respectively, according to a report by the South China Morning Post Google supplier Biwin, GPU leader Moore Threads see stocks plunge despite revenue surge. The drop occurred amid a broader rout in mainland technology stocks, with Shanghai’s Star 50 index falling over 4% as the market continued to shed more than 40% of its value since a July peak.
Both companies posted “blockbuster” third-quarter revenue, driven by heightened demand for artificial-intelligence hardware, but investors appear to be weighing short-term margin pressures against the longer-term AI growth narrative. The sell-off highlights lingering uncertainty about the sustainability of AI-related earnings despite the sector’s rapid expansion.
Our read: The market’s reaction underscores a disconnect between headline revenue growth and investor confidence in profitability, suggesting that Chinese AI chip makers must demonstrate clearer paths to margin improvement to stabilize their valuations.
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