Why Hesai Group Inc. (HSAI) Went Down On Wednesday?

We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where Hesai Group Inc. (NASDAQ:HSAI) stands against other worst-performing stocks.

Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.

The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.

Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.

In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

Logistics robots filling packages in a warehouse, preparing for delivery.

Hesai Group Inc. (NASDAQ:HSAI)

Hesai Group declined by 6.35 percent on Wednesday to finish at $22.55 apiece, with the company not spared from a noticeable sell-off in Chinese stocks amid the ongoing trade tensions globally despite the company’s impressive earnings performance last year.

In its latest earnings release, HSAI said it swung to a net income of RMB147 million from a RMB140.9 million net loss in the same period a year earlier, as revenues grew 28 percent to RMB719.8 million from RMB561.2 million.

Meanwhile, it was able to narrow its net loss for the full year by 78.5 percent to $102.4 million from $476 million, as revenues increased by 10.7 percent to $2.077 billion from $1.878 billion.

For this year, HSAI CFO Andrew Fan said that the company is set for an exceptional 2025, with revenues expected to settle between RMB3 billion and RMB3.5 billion.

“This explosive growth not only sets the stage for unstoppable momentum but also reinforces our path to long-term industry leadership,” he said.

Overall, HSAI ranks 4th on our list of worst-performing stocks. While we acknowledge the potential of HSAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HSAI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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