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 potential of IQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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