Hong Kong AI Concept Stock Daily: BIRENTECH Leads Declines with a 10.61% Drop as Alphabet Misses Revenue and Profit Estimates in Q3 - 20261029

I. Market Overview

On October 29, 2026, the three major Hong Kong indices opened mixed and then fell together, with the Hang Seng TECH Index peaking at its opening level, before paring losses late in the session; all three still closed lower. The Hang Seng Index closed at 22,958.65, down 0.59%; the Hang Seng TECH Index closed at 3,744.14, down 2.84%; and the Hang Seng China Enterprises Index closed at 7,755.66, down 0.46%. Full-day turnover on the Hang Seng Index reached HKD 189.5 billion, slightly above HKD 181.4 billion a day earlier. Only one of the 20 AI concept stocks rose, with all six AI chip names falling and leading the declines, while LLM and autonomous driving names weakened broadly.

In the LLM space, all seven names fell: BIDU-W (09888.HK) 2.07%, TENCENT (00700.HK) 2.58%, MEITUAN-W (03690.HK) 2.81%, BABA-W (09988.HK) 2.83%, KUAISHOU-W (01024.HK) 3.18%, MINIMAX-W (00100.HK) 6.71% and Z.AI (02513.HK) 6.91%.

In the AI Chips space, all six names also fell, making it the weakest segment of the day: GIGADEVICE (03986.HK) 4.62%, SMIC (00981.HK) 5.94%, MONTAGETECH (06809.HK) 6.60%, HUA HONG GRACE (01347.HK) 7.71%, ILUVATAR COREX (09903.HK) 8.76% and BIRENTECH (06082.HK) 10.61%, the weakest performer in the pool.

In the Autonomous Driving space, all five names fell: WERIDE-W (00800.HK) 2.63%, ROBOSENSE (02498.HK) 3.91%, HORIZONROBOT-W (09660.HK) 4.14%, PONY-W (02026.HK) 4.57% and BLACK SESAME (02533.HK) 6.39%.

In the Embodied AI space, XIAOMI-W (01810.HK) rose 0.23%, the only gainer in the pool, while UBTECH ROBOTICS (09880.HK) fell 5.50%.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 29, 2026.

III. AI Industry & Corporate Developments

1. Alphabet Misses Both Revenue and Profit Estimates in Q3 as Questions Over AI Returns Resurface

On October 29, Alphabet reported third-quarter results for the period ended September 30, with both revenue and profit below market expectations, indicating that its heavy AI spending has yet to generate returns sufficient to justify the outlay. Capital expenditure rose to a record, free cash flow was negative for a second consecutive quarter at negative USD 9.1 billion, and an USD 8.7 billion loss on equity investments weighed on net income. Google Cloud revenue was USD 30.7 billion with profit of USD 11.1 billion, both above analyst estimates, while Microsoft, which also reported, posted cloud revenue ahead of expectations. Alphabet shares fell as much as 9% in after-hours trading.

2. Samsung Electronics Posts First Quarterly Operating Profit Above KRW 100 Trillion, though Net Profit Misses

On October 29, Samsung Electronics reported third-quarter 2026 revenue of KRW 195.25 trillion, up 126.9% year on year, and operating profit of KRW 107.44 trillion, up 783.1%, making it the first technology company to top KRW 100 trillion in quarterly operating profit. The semiconductor division posted revenue of KRW 147.1 trillion and operating profit of KRW 106.5 trillion, with memory revenue up 427% to KRW 140.7 trillion on sharply higher HBM4 sales. However, about KRW 9.5 trillion of finance costs and an KRW 800 billion loss in the device business pulled net profit to KRW 75.21 trillion, below the KRW 89.06 trillion consensus. The company expects memory demand to keep expanding in the fourth quarter, sees the chip shortage worsening next year, and guides to double-digit foundry revenue growth in the quarter. Samsung shares fell as much as 6% intraday and the KOSPI extended losses to 3%.

3. Market Focuses on Marvell's Reported Bid for Lumentum, with Optical Supply Chains Facing Potential Reshaping

According to media reports, Marvell Technology is in advanced talks to acquire optical component maker Lumentum. Industry participants note that a completed deal would give NVIDIA access to a complete supply capability spanning DSPs, optical chips, continuous-wave lasers and optical modules, with Marvell supplying DSPs, Lumentum supplying optical chips and continuous-wave light sources, and its subsidiary CloudLight supplying modules. On October 29, Hong Kong optical communication and PCB names sold off, with YOFC (06869.HK) down more than 8% and A-share peers including CIG and CREALIGHTS falling over 11%.

4. Aoshikang Technology Plans a RMB 6 Billion Nantong Base for Intelligent Computing and High-Speed Interconnect PCBs

On the evening of October 28, Aoshikang announced an industrial project agreement with the Haimen Economic and Technological Development Zone administration to build a Nantong base for intelligent computing and high-speed interconnect PCBs in Jiangsu province, with planned investment of about RMB 6 billion across three phases, including roughly RMB 2.5 billion for phase one. The project targets high-layer boards and advanced HDI capacity used in AI servers and high-speed interconnect. On October 29, A-share PCB names sold off, with Aoshikang Technology and AVARY HOLDING hitting the daily limit and SYE and WUS falling more than 7%.

5. Hang Seng Indexes Revises the Compilation Rules for the Hang Seng HK-US Technology Index, with Anthropic to Join the Designated US Listing List

On October 28, Hang Seng Indexes announced updates to the compilation methodology of the Hang Seng HK-US Technology Index, covering the selection universe, constituent selection, the fast entry mechanism and replacement of temporarily excluded constituents, plus a new liquidity requirement. The new methodology will apply in the index review for the period ended September 30, 2026, with constituent changes effective December 14, 2026. Anthropic will additionally join the list of designated US-listed constituents, subject to confirmation of its listing; the weights of the nine US-listed constituents will be reset to equal weighting after the close of Anthropic's seventh trading day, with the new constituent and updated weights effective on its eleventh trading day. The index name and code remain unchanged.

IV. Profiles of Representative AI Concept Stocks