BlockBeats news, on August 3, Dongfang Gangwan Chairman Dan Bin shared a Morgan analyst’s view this morning, stating that in July, the chip sector experienced a sharp decline and massive leveraged liquidations; however, within the broader AI cycle, such a correction is both inevitable and a sign of market health.
The market has yet to fully grasp the limitless demand potential of AI as an "intelligent" product. Concerns over capital expenditures by tech giants echo the early days of Amazon Web Services, but the AI opportunity is far greater. Capital is flowing back from low-quality tech stocks to high-quality assets, validating the outlook for a "comeback" by end-2026. While memory chips still face cyclical risks and high volatility, it’s advisable to wait for technical recovery; we remain more optimistic about fundamentally strong companies like NVIDIA, Broadcom, and TSMC, as capital will increasingly flow toward high-quality application-layer opportunities.
On the other hand, hyperscale cloud providers are experiencing accelerated business growth, with a large and rapidly increasing order backlog, indicating that previous constraints on capital expenditures were a misjudgment—these investments will translate into definite future revenue. Looking ahead to August, the Nasdaq’s rebound is likely to continue until NVIDIA’s earnings report, as the tech sector’s rolling correction nears its end and capital flows back into high-quality technology stocks. In terms of specific sector strategies, investors should avoid chasing highs in the semiconductor and memory storage sectors at this time. However, investors may adopt a short-term swing strategy of buying on dips until the memory storage sector fully completes its technical bottom formation.