Woofun AI notes that economist Hong Hao characterizes the current AI sector decline as a continuation adjustment rather than a final bottom. He cites the South Korean KOSPI index to argue that stock prices have prematurely reflected fundamentals, leading to further technical corrections and short-term downward volatility.

Hong Hao observes capital rotating from overheated AI and semiconductor sectors into previously neglected old economy firms, including Tencent, Alibaba, and Meituan. He argues that optimism regarding AI-driven productivity should logically extend to the broader economy, favoring broad-based growth over localized speculation.