ME News report, July 29 (UTC+8): Recently, AI-related stocks have continued to decline, with several leading AI stocks, including SK Hynix, plunging by nearly 50% within a short period. In response, domestic and international brokerages and KOLs have aggressively positioned themselves to buy the dip this week. Dong Fang Gang Wan chairman Dan Bin publicly stated on Xueqiu today: “When prices crash dramatically, you must have the courage to buy! I’ve just used up all my remaining ammunition.” Prominent investor Duan Yongping posted real-time trade data for a SpaceX put option last Friday, which the market widely interprets as his typical “potential accumulation” move. Meanwhile, major brokerages including Morgan Stanley, JPMorgan Chase, Citigroup, and Nomura unanimously agree that the Korean market is “approaching its bottom,” with “leveraged positions nearing liquidation.” They view the current market as a technical correction rather than a fundamental reversal and maintain their high target prices for the KOSPI index. Tom Lee, well-known in the crypto space, expressed a similar view, stating that the pullbacks in SK Hynix and Samsung reflect forced deleveraging and that weak hands have been cleaned out—indicating the market is near its bottom. He emphasized that AI represents a multi-year industrial-scale buildout, and all such pullbacks are “buyable.” Similar “buy-the-dip” sentiment is also prevalent in U.S. markets, with most analysts noting that the overall valuation of the Mag7 relative to the S&P is at a decade-low. They recommend buying Nvidia, Microsoft, Meta, Alphabet, Broadcom, and Amazon on dips. BlockBeats believes markets are highly unpredictable; investors must take responsibility for their capital and decisions. In today’s extreme market conditions, it advises caution when using leverage tools and urges rational investment behavior. (Source: BlockBeats)
AI stocks plunge as analysts and investors call for a bottom this week
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Summary
Investor sentiment in AI stocks turned sharply bearish as MetaEra and SK Hynix plunged nearly 50% in recent days. Fear and Greed Index readings suggest panic selling, yet analysts believe the bottom may be near. Dan Bin of Dongfang Gangwan said he has used all his remaining capital during the sell-off. Duan Yongping’s SpaceX put trade is viewed as a potential bottom signal. Morgan Stanley, JPMorgan, and Citigroup anticipate a near-term rebound for the KOSPI. Tom Lee characterized the declines in SK Hynix and Samsung as forced deleveraging, not a collapse. U.S. analysts favor Mag7 names such as Nvidia and Microsoft, now trading at multi-year lows. BlockBeats advises caution in volatile markets.
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