The market opened lower on July 30 and continued to decline, with the Shanghai Composite Index falling below 3,800 points, the STAR 50 index dropping over 6%, and the ChiNext index sliding more than 5%. The ChiNext index fell back below 3,200 points, erasing all gains for the year, after rising as much as 36% from the start of the year to June 25.
Well-known private equity veteran But Amber posted on social media, stating, "I still believe in a 10-year bull market for artificial intelligence; this is merely a temporary adjustment. The overall logic hasn't changed—it's just a pullback after a significant rally. I don't think AI will be over in just three or four years."
In response to a netizen's question about whether some AI hardware trends have ended, But Amber said, "Take SK Hynix as an example, with a PE of 4 times. Unless it's still viewed as a strong cyclical industry, that might be possible. But if it shifts from a strong cyclical to a weak cyclical nature, then it's not over yet."
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