The stock price drops, Fourth Paradigm clarifies rumors

NightAirdropper · 2026-02-28T01:52:01+00:00

Fourth Paradigm Clarification: The recent decline in stock price is due to market concerns about AI large models replacing software industries. The company states that AI development drives increased demand for computing power, benefiting its main business, with computing power revenue accounting for 83.9% of total revenue in the first nine months of 2025.

NightAirdropper

2026-02-28 01:52:01

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Beijing Business Daily (Reporter Wei Wei) — On February 25, Fourth Paradigm announced that the board of directors has noticed a significant decline in the company’s share price recently. It is understood that there are rumors in the market suggesting that the rapid iteration of AI large models will lead to the replacement of existing business models in the software industry, which has caused concerns about the prospects of the software industry and the group.

In response, the board of Fourth Paradigm clarified the above rumors as follows: In recent years, the development of AI large models has been accelerating, and the demand for computing power and related services has also grown rapidly. The group’s main business has benefited from this trend. According to the company’s announcement, in the first nine months of 2025, 83.9% of Fourth Paradigm’s revenue came from computing power-related income, primarily based on the usage of computing resources; 16.1% of the revenue came from software services.

As of the time of this report, Fourth Paradigm’s stock price is HKD 40.32, with a total market value of HKD 20.933 billion.

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