Chinese stock markets are sagging hard, and the state will not jump to its rescue this time, moreover saving the obviously overvalued companies. That's pretty clear.
They had gigantic loans signed with their stock as collateral, and now, you see how that ended.
That's one thing, but the hundreds (yes, hundreds, literally) AI-enabled chips and SoCs, from small and medium not-so-well-funded Chinese firms are real - most of them contains some RISC-V hard cores by the way.
Some of them will be bought by those fancy-valuated hype-enablers, and maybe even prove their initial valuation at the end.
As for P/S ratios, a lot of tech startups (in various fields) have zero revenue, which makes the ratio infinite, so I'm not sure that says very much.
Also, are there any AI applications which have already generated a large amount of revenue?