Analysis: Extreme Narrative Predicting the Imminent Burst of the "AI Bubble" Expected to Be Unfounded

November 24th. According to a research report by CITIC Securities, it was judged that the stock market decline on November 20th was driven by macro factors rather than panic selling triggered by the bursting of an AI bubble. The main reason for this pullback was that the September non-farm payroll data exceeded expectations and was combined with hawkish remarks from the Federal Reserve, resulting in profit-taking in the market. In view of the marginal weakening of the US labor market, the December Fed interest rate meeting may mark the peak of the "hawkish panic" sentiment. After that, the market's focus may shift to the nomination game around the new Fed chairman appointed by President Trump. The fundamental outlook of the AI sector remains solid, with Token index-level growth, ongoing supply chain bottlenecks, strong cash flow from the four major tech giants, and a robust balance sheet. It is expected that the extreme narrative of the "AI bubble" bursting in the short term will be difficult to materialize. (FX678)