Analysis: The extreme narrative of the "AI bubble" bursting in the short term is expected to be difficult to manifest

CITIC Securities research report states that the decline in U.S. stocks on November 20 was driven by macro factors, rather than panic selling triggered by the burst of the AI bubble. The main reason for this round of adjustment is the better-than-expected non-farm payroll data in September combined with hawkish remarks from the Federal Reserve, which triggered profit-taking in the market; coupled with the marginal weakening of the U.S. labor market, the December Federal Reserve meeting may reach the peak of this round of "hawkish panic" sentiment, after which the main line of market trading may shift to the nomination game for the new Federal Reserve chairman by Trump.

The fundamentals of the AI sector remain solid, and under the circumstances of token index-level growth, persistent supply chain bottlenecks, and the strong cash flow and balance sheets of the four major tech giants, the extreme narrative of the "AI bubble" bursting is expected to be difficult to manifest in the short term. (Jin Shi)