Analysis: Tonight's Non-Farm Payroll Data Could Become a New Excuse to Reduce AI Bets, Broadcom’s Results Trigger AI Overheating Alarm

Odaily reported that emerging market assets fell for a third consecutive session, led by a decline in South Korean stocks, as investors’ enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Markets Index fell 1.7% to 1728.66 points, while South Korea's KOSPI index once plummeted 7% on Friday.

Chipmakers such as Samsung Electronics and SK Hynix led the decline after Broadcom’s AI chip sales outlook fell short of overly high market expectations. These two companies together account for more than half of the KOSPI's total market capitalization. After two consecutive weeks of gains, emerging market stocks and currencies are expected to record weekly losses this week.

Charu Chanana, Chief Investment Strategist at Saxo Markets, said: “Broadcom is a trigger, reminding the market just how excessive expectations have become. Investors have priced in a lot of perfection for AI, so even a small disappointment can lead to a rather sharp revaluation. If non-farm payroll data comes in stronger than expected, it could become another excuse to cut back on AI investments." (Jinshi)