The impact of AI on the high-end manufacturing industry and the high-end service industry

Just a personal note for memory, the judgment may not be accurate.

Today, Hong Kong stocks fell quite a bit. The US stock market performed poorly yesterday, and Hong Kong stocks followed suit.
Hong Kong stocks are heavily influenced by both the US and A-shares, but compared to them, the impact of the US market on Hong Kong stocks might be even greater.
Because of AI, the US stock market may enter a death spiral. AI has disrupted the existing ecosystems of the IT and manufacturing industries. Previously, the logic was that AI could improve efficiency, allowing companies to lay off a large number of employees, which in theory would reduce costs and increase profits, leading to higher stock prices. However, now it appears that AI might also overturn the application development companies, such as IBM, Microsoft, Oracle, and SAP. Additionally, AI platform businesses are likely to follow a winner-takes-all model. To avoid falling behind and to outcompete rivals, AI platform companies will engage in a prolonged arms race, making it difficult to determine a winner within one or two years.
In comparison, companies supplying equipment to AI platform firms—like GPU, memory, and hard drive manufacturers—can enjoy stable profit margins. However, the investments of AI platform companies also have limits; unlimited expansion is impossible.
The game is becoming increasingly complex.

Compared to leading US AI companies, Chinese AI firms are slightly behind in technology and performance, but as long as Chinese companies keep pace with US firms—using low prices and open-source strategies to challenge them, capture their market share, and delay US AI platform companies’ profitability—those US companies will face significant difficulties. Of course, domestic Chinese AI companies are also under pressure, but overall, this is very beneficial for China. If it weren’t for DeepSeek, ByteDance, and Alibaba’s pressure and impact on US AI companies, the stocks of Google, Meta, and NVIDIA would be much higher than they are now.

I do not hold stocks related to AI and robotics; my portfolio mainly consists of pharmaceutical stocks. Recently, I’ve been considering AI’s impact on the pharmaceutical industry. With AI’s support, more candidate drugs could be screened out and the drug development and approval process could be accelerated. Competition among pharmaceutical companies will become more intense, but the number of R&D projects will increase significantly, leading to a substantial rise in orders for pharmaceutical R&D service companies. I plan to gradually increase my holdings in pharmaceutical R&D service companies.