The global technology sector is witnessing a sharp divergence as Chinese AI and semiconductor IPOs boom, while US chip stocks suffer a sharp selloff. The contrasting moves highlight shifting investor sentiment amid policy support in Beijing and mounting inflation and spending fears on Wall Street.
In China, domestic tech initial public offerings have rebounded dramatically. According to LSEG data, technology companies raised a combined $3.1 billion between January and June 18, 2026 – more than five times the amount raised during the same period a year earlier. The pipeline continues to swell, with nearly 50 firms filing for IPOs in Shanghai and Shenzhen, collectively planning to raise at least 126.1 billion yuan ($18.7 billion). The largest planned offering is memory-chip maker ChangXin Memory Technologies, targeting a 29.5 billion yuan IPO in Shanghai, which would mark the biggest domestic listing of the year and lift total proceeds to a three-year high.
Beijing’s fresh policy support is fueling the resurgence. On June 17, regulators announced backing for startups in “future industries” like quantum tech, nuclear fusion, and brain-computer interfaces. The Shanghai Stock Exchange also eased rules for large-language-model companies to list on the STAR Market. AI firm Zhipu AI, which raised HK$4.35 billion in a January Hong Kong IPO, now plans a further 15 billion yuan listing in Shanghai. Baidu’s chip unit Kunlunxin is awaiting approval for a $2 billion Hong Kong listing, while authorities signaled support for Hong Kong-listed tech companies seeking secondary mainland listings.
In stark contrast, US tech and semiconductor stocks plunged on Friday. The Dow fell 200 points, the Nasdaq dropped 0.95%, and the S&P 500 lost 0.61%. Micron Technology slid over 5.8% despite strong earnings, while Advanced Micro Devices and Intel each fell more than 3.5%. Nvidia lost 1.7%. Investor anxiety deepened after a New York Times report suggested OpenAI may delay its IPO until next year, raising questions about the sustainability of heavy AI infrastructure spending. JPMorgan traders noted the delay could weigh on “sustainability of their infrastructure spending given the delay in funding from the capital markets.”
Broader macroeconomic fears added to the pressure. US inflation climbed above 4% in May for the first time in three years, driven by energy prices and potentially rising chip costs. Markets now price in one more 25-basis-point rate hike and a near 27% chance of another increase this year. The selloff spread globally: SoftBank Group plunged over 12% in Asia, South Korea’s Kospi dropped 5.81%, and European stocks also retreated.
For the crypto market, the traditional equity selloff could dampen risk appetite temporarily, but the bifurcated picture – with China pouring support into tech innovation – may offer a long-term narrative for blockchain and AI-linked tokens. However, direct near-term impact on crypto assets remains limited as the focus stays on Fed policy and inflation.
