Guotai Asset Management says China AI infrastructure selloff looks overdone, urges risk control amid volatility
SOXX•Guotai flags sharp A-share selloff in AI and semiconductor names
Guotai Asset Management flagged a sharp A-share selloff, with the ChiNext Index down 7.35% on July 29.
- Communications equipment led declines, with the CSI All Share Communications Equipment Index down 10.29%.
- The semiconductor materials and equipment theme index fell 6.23%.
- Key drivers cited included global risk-off moves tied to U.S. semiconductor weakness, renewed AI-bubble concerns, and trade-tariff headlines.
Medium-term AI capex view stays bullish despite near-term volatility
SK hynix reported Q2 revenue of KRW 79.32 trillion, below a KRW 84 trillion consensus estimate, while operating profit of KRW 60.54 trillion missed a KRW 64 trillion forecast.
Guotai kept a bullish medium-term view on AI capex, projecting global AI capital expenditure could reach nearly $1.5 trillion by 2027, while warning that near-term volatility may persist and risk control remains important.
