Invesco: The correction in tech stocks does not signify the end of the AI market; we remain optimistic about long-term opportunities in Chinese assets.

On July 30, Brian Levitt, Chief Global Market Strategist at Invesco, stated in an exclusive interview with the 21st Century Business Herald in Beijing that recent market concerns primarily focus on three issues: whether AI investments are overheated, geopolitical risks, and whether the Federal Reserve is "behind the curve." However, he holds contrary views on all three concerns. Recently, global tech stocks, particularly those related to AI, have seen significant adjustments, raising doubts about the sustainability of the AI investment cycle. Levitt believes this is more about a cooling of market sentiment rather than a deterioration of fundamentals. "I still believe we are in a long-term bull market," he said. "The market has previously risen too quickly, almost parabolically, and no bull market can sustain such a pace indefinitely." He noted that in a long-term structural bull market, periodic corrections are perfectly normal, and what is happening now is merely "a normal adjustment within a bull market." "I would only start to worry if major tech companies show earnings significantly below expectations, if earnings forecasts are continuously revised downward, or if financing costs rise sharply." He stated that none of these signals have appeared so far, and leading AI companies continue to increase capital expenditures, with profitability remaining robust.