Aug 13, 2026 · 7 min
AI spending splits Asian markets
Tencent Slumps, SK Hynix Climbs, Hansoh Pharma Rises
The episode shows how investors are separating companies benefiting from AI demand from those still proving their AI investments can pay off.
- 1Tencent faces investor skepticism over rising AI spending despite strong advertising and mobile-gaming results.
- 2SK Hynix and Samsung gain as frontier AI models strengthen expectations for high-bandwidth memory demand.
- 3Chinese biotech stocks rally while Treasury yields expose competition between government borrowing and AI investment.
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The sharpest contrast comes as memory stocks rise on AI demand while Tencent falls under scrutiny for the returns on its own AI spending.
The brief
Tencent shares fell as investors questioned the scale and returns of its AI investment, even as advertising and mobile gaming offered support.
SK Hynix and Samsung rose on renewed memory demand tied to large AI models, with new, lower-cost models potentially expanding HBM needs.
Hong Kong-listed biotech stocks rallied as capital moved away from Tencent and investors focused on innovation in chronic illness, oncology, and weight-loss treatments.
The discussion then turns to Treasury markets, where a high-yielding 10-year auction highlights the tension between government borrowing, AI investment, and longer-term inflation concerns.
The episode closes by previewing a smart-cities discussion on how AI and long-term planning could help rapidly growing cities manage infrastructure demands.
What was said on this episode
12 statements · 8 positive · 3 negative · 1 neutral
Tencent shares are down 4% amid concerns about AI capital expenditure.
“The stock's down 4% today.”
Listen at 0:58
Lenovo shares have risen 21%.
“Lenovo is up 21%.”
Listen at 1:18
Lenovo is leading Chinese technology large caps without signs of slowing.
“this stock has been leading China tech big caps, and there seems like there's no sign of slowing down.”
Listen at 1:19
Frontier AI model speculation is driving demand for high-bandwidth memory.
“that speculation basically is driving HBM demand”
Listen at 2:01
Lighter memory positioning and lower volatility support a more stable memory-stock rally.
“that's setting up a more stable foundation for this rally.”
Listen at 2:25
Chinese drug innovation continues across chronic illness, oncology, and weight loss.
“this pace of innovation from the Chinese continues”
Listen at 2:42
Chinese drug innovation is driving gains in Phamron, CSPC, and Hanso Pharma.
“And that's driving a whole range of names, including Phamron, CSPC, and Hanso Pharma.”
Listen at 2:53
US Treasuries compete with AI capital expenditure for investor flows over the longer term.
“in the far term, you have US Treasuries kind of competing with some of this AI capex from a pure flow basis”
Listen at 3:37
US inflation is likely to remain stickier further out as economic growth accelerates.
“the inflation looks stickier further out as the US moves to a higher gear economically.”
Listen at 3:50
Long-term US interest rates can continue rising as government borrowing competes with hyperscaler spending.
“long-term rates can continue to go higher as the U.S. continues to borrow money in competition with its own hyperscaler.”
Listen at 4:31
Dubai responded effectively to its sudden population increase.
“they reacted very well to it.”
Listen at 5:50
Dubai has a long-term urban-planning vision.
“They have a long-term urban planning vision”
Listen at 5:51
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Mentioned
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Bloomberg L.P.Books & mentions
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