Chinese investor Dan Bin shared a view, noting that the recent deleveraging pullback is an inevitable process, and the Nasdaq's August rally is expected to continue until ahead of Nvidia's earnings release.

This morning, Dan Bin, chairman of Oriental Harbour, shared a Morgan Stanley analyst’s view, noting that the chip sector saw a sharp sell-off and massive leveraged liquidations in July. However, amid the broader AI cycle, such a pullback is both an inevitable stage and a sign of a healthy market. The market has yet to fully grasp the infinite demand potential of AI as an "intelligent" product; concerns over capital expenditures by major tech firms mirror the early days of Amazon’s AWS, but AI opportunities are far larger. Capital is flowing back to high-quality tech stocks from low-quality ones, validating the outlook that "the kings will return" by the end of 2026. Memory chips still carry cyclical risks and high volatility, so it’s advisable to wait for technical repair. A more positive outlook is held for fundamentally strong players like NVIDIA, Broadcom, and TSMC, with capital expected to flow more into high-quality application-layer stocks. On the other hand, hyperscale cloud providers are seeing accelerating business growth, with large order backlogs that continue to expand, indicating that previous penalties on capital expenditures were misjudgments—these investments will translate into solid future revenues. Looking ahead to August, the Nasdaq rally is expected to continue until NVIDIA’s earnings report, as the tech sector’s rotational correction nears its end, with capital accelerating its flow back to high-quality tech stocks. In terms of sector-specific operations, investors should avoid chasing highs in the chip and memory sectors for now. However, they can adopt a short-term swing trading strategy of buying on dips until the memory sector fully forms a bottom pattern technically.