Dan Bin: AI Cycle Still in Early Stages, Bullish on Nvidia, Broadcom, and TSMC Among Tech Companies

Odaily News Oriental Harbor Chairman Dan Bin forwarded a view on Weibo stating that the chip sector underwent significant adjustments in July, with the Nasdaq chip index falling over 20% in the past month, and some highly leveraged investors facing margin call pressure due to the market correction.Dan Bin stated that the long-term potential of AI is still not fully understood by the market. Unlike previous technological revolutions, AI ultimately provides "intelligence," and the potential demand space is enormous. Current market concerns over hefty capital expenditures by tech giants are similar to past investor skepticism about Amazon AWS's massive investments, but the business opportunities brought by AI may far surpass the AWS era. He pointed out that the recent correction in the memory chip sector has exposed cyclical risks in the industry, and short-term technical indicators still need repair, with funds potentially flowing more toward application-layer companies with stronger fundamentals. Currently, he is more bullish on high-quality tech companies such as Nvidia (NVDA), Broadcom (AVGO), and TSMC (TSM).Additionally, Dan Bin believes that the July earnings season released important signals, with growth at hyperscale cloud service providers still accelerating. Among them, AWS annualized revenue is approximately $169 billion, up 37% year-over-year; Azure annualized revenue is approximately $124 billion, up 43% year-over-year; and Google Cloud annualized revenue is approximately $99 billion, up 82% year-over-year. Looking ahead to August, Dan Bin believes that the tech stock correction may be nearing its end, and funds are expected to flow back into high-quality tech assets. At the same time, the current market has high short positions and low investor sentiment, and extreme pessimism could become a potential driver for subsequent market gains.