WELLCELL H-NEW (02477.HK) experienced a significant decline of 25.76% during intraday trading on Thursday, marking a sharp pullback for the stock.
The plummet follows a period of substantial gains driven by speculation around the company's AI computing power concept. WELLCELL had previously announced an AI strategy upgrade, planning expansion into computing power leasing platforms, computing power scheduling and optimization platforms, and Token aggregation APIs. However, the company has cautioned that its AI business remains at an early stage and faces various uncertainties including technology, market, and policy factors.
Market analysts attribute the sharp correction to continued profit-taking pressure after the stock's recent surge, with investors reassessing the gap between the AI concept narrative and near-term fundamental delivery. The stock had previously rallied over 24% in a single session on May 12 following large block purchases, leading to multiple sharp rebounds and corrections as market sentiment diverged.
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