AI-related stock selling intensified, dragging major emerging-market equity
indices lower for a second day and weakening currencies in Asian tech hubs.
Julius Baer CIO Yves Bonzon said strong near-term profits may support some AI
valuations but the technology’s development path is highly uncertain, which
could cause episodic large-scale profit-taking over the coming years. He flagged
uncertainty about how future profits will be allocated and where valuations will
settle, noting today’s sharp sell-off in Korean semiconductor names as an
example. Bonzon added that while a more bearish market would focus on supply
growth risks, advanced AI storage products face long certification and
validation cycles, so competitive impacts are likely to materialize gradually
rather than immediately.
