China AI Stocks Frenzy Loses Steam as Earnings Doubts Creep In

Robin Li, chairman and chief executive officer of Baidu Inc., speaks during a launch event for the company's Ernie Bot in Beijing on March 16. Photo: VCG

(Bloomberg) — The rapid-fire gains in China’s artificial intelligence stocks are starting to show signs of wear, prompting some to ask: did the market get ahead of itself?

From SenseTime Group Inc. to Baidu Inc., shares tracking the ChatGPT frenzy have lost momentum as investors await first-quarter results, with a related index recording its worst weekly drop since November. Money managers are watching for any fresh warnings from firms about their limited capability on the AI front as they weigh Beijing’s plans for greater oversight of the industry.