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

Odaily reported that emerging market assets fell for a third consecutive trading day, led by South Korean stocks, as investors' enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Markets Index fell 1.7% to 1,728.66 points, while South Korea's KOSPI index briefly plunged 7% on Friday.

After Broadcom's AI chip sales outlook failed to meet the market's excessively high expectations, chipmakers such as Samsung Electronics and SK Hynix led the decline. These two companies together account for more than half of the total market capitalization of the KOSPI index. After rising for two consecutive weeks, emerging market stocks and currencies are expected to record weekly declines this week.

Charu Chanana, Chief Investment Strategist at Saxo Markets, said: "Broadcom is a trigger, reminding the market how excessive expectations have become. Investors have already 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 is stronger than expected, it could become another excuse to reduce AI investments." (Jin Shi)