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

Just a personal note for my own reference; the judgments may not be entirely 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 A-shares, the impact from the US market might be even greater.
Because of AI, the US stock market could 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 many employees, which theoretically would reduce costs and increase profits, leading to higher stock prices. However, now it appears that AI might also overturn the business models of application development companies like IBM, Microsoft, Oracle, and SAP. Additionally, AI platform businesses tend to follow a winner-takes-all model. To avoid falling behind and to outcompete rivals, AI platform companies engage in prolonged arms races, making it difficult to determine a winner within one or two years.
In comparison, companies supplying equipment to AI platform firms—such as GPU, memory, and hard drive manufacturers—can enjoy stable profit margins. However, the investments in AI platforms have limits; they cannot expand infinitely.
The game is becoming increasingly complex.

Compared to leading US AI companies, Chinese AI firms are slightly behind in technology and performance, but Chinese companies can keep pace by leveraging low prices and open-source strategies to challenge US firms, seize market share, and delay the profitability of US AI platform companies. This makes it difficult for those US companies to turn a profit. Of course, Chinese domestic AI companies are also facing difficulties, 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 firms.