China's AI Dream Fades as Alibaba, Tencent, PDD Plunge While US Stocks Soar - Alibaba Gr Hldgs (NYSE:BABA

China's AI ambitions appear to be faltering as heavyweight tech names slide while U.S. equities push higher. Alibaba's share price fell to $124 on Friday, about 35% below its peak from last year. Tencent slipped to $54, its lowest since April of last year, after peaking near $87.70 in October. PDD Holdings dropped to $84, down from a year-to-date high near $140, as it confronts intensified competition in its sector. The Nasdaq 100 and S&P 500 reached new highs, underscoring a widening gap between Chinese AI bets and U.S. stock leadership. Tencent said its revenue growth missed estimates, with gaming revenue slowing in the quarter. The group plans to boost AI investments to more than $2.6 billion, funded partly by a dividend cut. Annual capital expenditure is expected to rise as chip spending remains elevated across the industry. PDD Holdings posted weak quarterly sales of about $15.65 billion, undershooting forecasts amid rising competition and a shift toward free tools.