Invesco APAC global markets strategist David Chao said Asian tech stocks began
the week weak after a large U.S. semiconductor firm reported revenue below
expectations and did not raise AI guidance, sparking U.S. equity selling. He
said Asian tech is closely tied to the U.S. semiconductor cycle through shared
supply chains and investor positioning, but a single quarterly miss does not
signal an industry turning point. Markets had become overly reliant on
continuously rising AI guidance. In Asia the AI investment narrative is
Concentrated in a few Korean and Taiwanese names, increasing concentration risk
and market fragility and amplifying volatility when a company disappoints or
when demand or supply is disrupted.
