In the days that followed U.S. President Trump's meeting with Chinese President Xi, shares of Chinese firms slumped. What happened?
In the electric vehicle space, NIO shares fell to the low $5 range. Investors reacted negatively to NIO reporting non-GAAP earnings per ADS of $0.00. Revenue grew by 98.8% Y/Y to $3.7 billion. The sales growth did not matter if NIO did not report profits.
Xpeng (XPEV), another EV firm, posted April 2026 unit sales growth of 13% sequentially. On May 18, it announced the start of mass-producing robotaxis. That should move the product from the road testing phase to a commercial rollout.
In January, Xpeng CEO He Xiaopeng mentioned trials of the robotaxi and humanoid robot. That would pivot the EV firm to a physical EV company.
Stock markets are not pricing in that narrative. Shares have been stuck in a downtrend in the last year. Short interest is modest at 5.09%.
Viewed as a firm pivoting from e-commerce to AI, Alibaba (BABA) is in an established downtrend on the stock chart. The firm announced a Zhenwu AI chip, M890. This chip offers three times the performance of the 810E current-generation chip. It also has 144 GB of GPU memory.
Investors would rather hold AMD or NVIDIA (NVDA). Markets are certain that AI data centers will use NVIDIA GPUs instead of those offered by Alibaba.
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