Biotech2k
Biotech Investor, AI-Driven Drug Discovery
Asian stocks outside chipmakers look like the best bargain today. Asia ETFs trade at all-time highs, but they are led by a handful of overweight AI chip stocks while 90% of Asian companies sit near 52-week lows, including Baidu, Alibaba and NetEase. Sea, Hesai and Grab are the preferred names for building Asia exposure. x.com x.comÂ
AI semiconductor stocks are falling because valuations priced in too much growth beyond 2026-27, not because fundamentals are worsening. With the sector ETF up more than 100% year to date at one point, Q2 earnings couldn't meet those expectations, and a crowded trade is deleveraging as everyone races for the same exit. Fundamentals are likely improving, so as positioning and valuation reset the trade can continue, but selectively. x.comÂ
Semiconductor stocks have not priced in a record wave of AI chip demand. Taiwan chip exports jumped over 20% in a single month and demand is 30% above three months earlier, the biggest in history, while Korea is also seeing record semiconductor demand, up 30% on mid-2026. A step change in demand comes while semis are still cheaper than before the AI boom. x.com x.com x.com x.comÂ
Chinese equities, including Alibaba and KWEB, look set for a rapid reversal: after months of profit-taking and decade lows in many names while US markets reached highs, this morning's inflow is a positive sign. There is still value in many of these names. x.comÂ
Alibaba and Baidu are a no-brainer buy because Chinese AI stocks trade at very low valuations while China is determined to race the US in AI. x.comÂ
Big money is rotating out of overextended chips and AI plays, leaving semiconductor stocks that went straight up as exit liquidity for retail still piling in. The money is moving into software such as Accenture, Salesforce and ServiceNow, energy names Hawaiian Electric and Southern Company, and boring dividend stocks Whirlpool, Target and UPS. It is also flowing into China: Alibaba, JD.com, PDD, Baidu and Chinese internet stocks. x.com x.comÂ
Overextended, high-PE chip stocks look risky because they are pushing higher while the rest of the market repositions into software and safety plays such as dividend stocks. Even Whirlpool, Dollar Tree, Lululemon and Nike are moving strongly, and these groups don't normally rise together. The chip rally looks like an SK hynix-driven pump that is likely trapping retail into options. x.comÂ
Alibaba's HK$80 billion share placement, all earmarked for AI infrastructure, should flow into orders for Chinese AI suppliers. Its AI cloud revenue rose 45% to RMB 48.4 billion, and CEO Eddie Wu says the capex pays back within three years. Likely winners include server makers Foxconn Industrial Internet, Inspur and ZTE, chipmakers Cambricon and Hygon, optical suppliers Innolight, Accelink, Eoptolink and TFC, and switch maker Ruijie. AI demand may slow, and many names are still concept-driven. … Show more
Semiconductor and AI infrastructure stocks are vulnerable because expectations got too hot and the sector is priced for perfection, not because AI is dead. Even Samsung's record profit failed to calm doubts about how sustainable the AI chip boom is, sending names like Western Digital, Lam Research, Applied Materials and Micron down 5-7% pre-market, as strong earnings became a sell-the-news event. x.comÂ
