The AI market is facing short-term adjustment pressure, but the mid-term trend has not been broken, and defensive value stocks have become a safe haven (Morgan Stanley)
Morgan Stanley believes that the mid-term upward trend of AI-related assets has not ended, but will continue to face reversal pressure in the short term due to factors such as foreign capital outflows and summer position adjustments.
Morgan Stanley believes that the mid-term upward trend of AI-related assets has not ended, but will continue to face reversal pressure in the short term due to factors such as foreign capital outflows and summer position adjustments. The report does not highlights a complete exit from AI positions, but tactically prefers value stocks with domestic demand that are less affected by rising interest rates, and lists stocks with domestic sales accounting for more than 90% and low valuations for reference. One sentence conclusion: short-term shocks will not change the long-term trend of AI. Tactical allocation can increase holdings of high-quality domestic demand stocks during the adjustment period to cope with market fluctuations. Good/bad: short-term negative for AI concept stocks and positive for Japanese domestic demand value stocks. The AI callback pressure has not yet been completely released, and the logic of supplementary growth in domestic demand stocks has just begun to attract market attention. Catalysts: 1) The financial reports of technology giants from the end of July to August provide guidance on AI capital expenditures; 2) The Bank of Japan’s interest rate hike path and the trend of the Japanese yen exchange rate; 3) The return of market capital in September.