Last week, A-shares witnessed heightened volatility, marked by a shift in market dynamics and a significant pullback in previously high-flying tech stocks. Regarding the downturn in the AI sector, market opinions are divided: some institutions posit that the prior high level of trading congestion in AI stocks has triggered capital rebalancing pressures; others contend that this is mainly driven by short-term speculative capital, and that the tech sector's status as a key player in the long and medium terms remains intact. Despite these divergent strategic views, there is a market consensus that as the Q2 performance disclosure window draws near, fundamental factors will once again take center stage in determining prices, for both AI and non-AI sectors alike.
