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iQIYI (IQ) Loses 6.8% as Funds Flock to AI

We recently published 10 Stocks Melt Down in Hours. iQIYI Inc. (NASDAQ:IQ) is one of the worst performers on Wednesday.

Shares of iQIYI dropped by 6.81 percent on Wednesday to close at $2.6 apiece as funds shifted to artificial intelligence, while investors continued to digest trade tensions anew between the US and China.

Earlier this week, China warned the US over attempts to interfere in its issues on Taiwan and the South China Sea, saying that any move by Washington will be thwarted by Beijing. The fresh warnings weighed down on investor sentiment for Chinese companies.

Additionally, several Chinese firms staged plans to pursue secondary listing on the Hong Kong Stock Exchange (HKEX) over fears of getting delisted from the US stock markets, suggesting that concerns on the two countries’ strained relations lingered.

According to reports, iQIYI Inc. (NASDAQ:IQ) is underway with an initial public offering on the HKEX, which could raise the company up to $300 million in fresh funds. An official application is targeted to be filed by the end of the third quarter.

A report by Reuters, citing people privy to the matter, said that iQIYI, Inc. (NASDAQ:IQ) officially tapped Bank of America, JPMorgan, and China International Capital Corp. to work on its Hong Kong listing scheduled for February 2026.

While we acknowledge the risk and potential of  IQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IQ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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