Bin But: The recent deleveraging pullback is a necessary process. The Nasdaq rebound in August is expected to continue until Nvidia's earnings report.

August 3. This morning, Dong Bin, Chairman of Orient Harbor, reposted a Morgan analyst's view, stating that in July, the chip sector experienced a sharp decline and a massive leverage liquidation, but in the grand AI cycle, this level of pullback is both a necessary step and a sign of market health.

The market has not fully understood the infinite demand potential of AI as an "intelligent" product. Concerns about capital expenditure by giants have echoed the early story of Amazon AWS, but the AI opportunity is much greater. Funds are flowing from low-quality tech stocks to high-quality targets, confirming the judgment of "The Return of the King" by the end of 2026. Storage chips still face cyclical risks and high volatility. It is advisable to wait for technical repairs and favor solid fundamental companies like NVIDIA, Broadcom, and TSMC, with more funds flowing into high-quality application layers.

On the other hand, the business of hyperscale cloud providers is accelerating its growth. The scale of reserved orders is huge and the growth rate is still increasing, indicating that the previous capital expenditure penalty was a misjudgment, and these investments will translate into predictable future revenue. Looking ahead to August, the rebound of the Nasdaq is expected to continue until NVIDIA's earnings report. The tech sector's rolling correction is nearing its end, and funds are accelerating back into high-quality tech stocks. Regarding specific sector operations, for the chip and storage (memory) sectors, it is currently not advisable to blindly chase highs. However, investors can adopt a strategy of buying on dips for short-term swing trades until the storage sector completely emerges from a bottoming formation on the technical front.