The weakness of Asian tech stocks is only a short-term disruption, and JPMorgan remains optimistic about the expansion cycle of artificial intelligence.

On Thursday, Asian technology stocks fell, following the overnight decline of their U.S. counterparts, highlighting the increasing volatility of global tech stocks. In the Japanese market, SoftBank's stock closed down 4.4%, while chip equipment manufacturer Tokyo Electron saw a nearly 6% drop in its stock price, and Japanese memory chip maker Kioxia's stock plunged over 10%. The South Korean market exhibited even greater volatility, with SK Hynix's stock dropping 10.73% and Samsung Electronics' stock falling 6.5%. Despite the heightened volatility, analysts remain optimistic about the prospects for the tech industry. In a report on Wednesday, JPMorgan stated that the sell-off of Asian tech stocks has not undermined the AI investment cycle. The bank emphasized that aside from stock price movements, it has not observed any fundamental indicators suggesting a significant weakening in the next 6 to 12 months. The key fundamentals of the current cycle remain solid, with cutting-edge AI models continuing to improve every few months, and the demand for AI inference remains strong, whether for proprietary or open-source models.