Global technology stocks simultaneously pull back, AI remains dominant but demand for rebalancing is increasing.

Last week, the global market technology industry chain synchronized fluctuations, overseas related valuation decline put pressure on A-shares transmission, A-shares presented a pattern of "rise and fall, extreme differentiation". Looking at the brokerage research reports this week, the repeated expectation of a rate hike by the Federal Reserve, the increasing trading congestion in the technology sector, and disturbances in the AI industry have collectively suppressed risk appetite in the technology sector. In the medium term, there has not yet been a substantial turning point in the upward trend of the AI industry, with continued realization of prosperity in various sub-sectors, the foundation for the continuation of the market exists. East Securities stated that there has been significant volatility in the global market recently, in addition to the repeated expectations of a rate hike by the Federal Reserve and the liquidity fluctuations brought about by the quarterly balance in domestic and foreign capital markets, there have been some new controversies in the AI industry itself. For example, concerns in the market about the aggressive capital spending by large overseas AI companies potentially leading to deteriorating cash flow, and the possibility of high prices in some upstream sectors affecting downstream demand or gross profit. However, the institution believes that, whether from a liquidity perspective or an industrial trend perspective, the judgment that the current "AI computing power market has peaked" is not yet valid.