Du Houliang, deputy director of the equity research department of the China-Europe Fund, believes that the recent retracement in the technology sector is mainly due to the liquidation of highly leveraged overseas funds, not a reversal of industrial logic. Du Houliang said that AI has been a long-term industry for more than ten years. Analyzed from both the supply and demand sides, the supply side is constrained by the reduction in software and hardware costs and the expansion of production capacity in the global industrial chain. Currently, there is still a clear gap between the rapid growth in demand. Du Houliang pointed out that after recent adjustments, the valuations of some companies in the AI industry chain are already in a relatively low range. To some extent, this reflects pessimistic market sentiment, and it is also necessary to carefully look at the risks — undervaluation itself does not constitute sufficient conditions for growth. Currently, the mismatch between the industry's computing power supply and token demand is difficult to fundamentally resolve in the short term. The high boom is still supported by fundamentals, but it is necessary to continuously track the pace of order fulfillment and capacity release.

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