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

Odaily Planet Daily News Emerging market assets fell for a third consecutive session, led by South Korean stocks, as investor enthusiasm for AI stocks waned. The MSCI Emerging Markets Index fell 1.7% to 1,728.66 points, while South Korea's KOSPI Index once plunged 7% on Friday.

After Broadcom's AI chip sales outlook failed to meet overly high market expectations, chipmakers such as Samsung Electronics and SK Hynix led the decline, with these two companies accounting for more than half of the KOSPI Index's 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, stated: "Broadcom is a trigger, reminding the market of just how excessive expectations have become. Investors have priced in a lot of perfection regarding AI, so even a small disappointment can lead to a fairly sharp revaluation. If non-farm payroll data comes in stronger than expected, it could become another excuse to cut AI investments." (Jin Shi)