AI Stock Rout Has Investors in Asia Mapping Out Next Catalyst

Bloomberg News

AI Stock Rout Has Investors in Asia Mapping Out Next Catalyst
Taiwan Semiconductor Manufacturing Co.TSMCMSCI Emerging Markets Index
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(Bloomberg) -- Debate is raging on whether the AI rally has run its course but for some investors, another drawdown may be a chance to buy.Most Read from...

-- Debate is raging on whether the AI rally has run its course but for some investors, another drawdown may be a chance to buy.New York City’s Outdoor Dining Sheds Will Start Disappearing

Here are six charts to show the state of play, and why some investors are keeping faith in the trade: Both TSMC and Samsung reported a solid beat in their second-quarter results, while analysts said TSMC’s margin guidance indicated a potential price increase for its leading-edge chips. The two firms and SK Hynix are expected to report earnings growth of 26% to 55% next year, compared with an average of just 12% for MSCI Asia Pacific Index members, according to data compiled by Bloomberg.

The region’s tech shares have become cheaper following the recent losses, a factor that may help boost their appeal among investors. As the earnings consensus rises and prices fall, the valuation on the Bloomberg gauge — as measured by the forward price-to-earnings ratio — has dropped below its 10-year average.

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Taiwan Semiconductor Manufacturing Co. TSMC MSCI Emerging Markets Index SK Hynix Inc. Asia Global Equities Morgan Stanley Tech Stocks Investors

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