HSBC: AI Investment Cycle Remains Strong Despite Semiconductor Stock Volatility

HSBC's insights suggest that the recent downturn in Asian semiconductor stocks is not a sign of a weakening AI investment cycle, but rather a re-evaluation of high earnings expectations by investors. Patrick Ho, CIO for North Asia at HSBC Private Bank, highlighted that AI capital expenditures are accelerating, with global semiconductor sales reaching a record $120.6 billion in May 2026, indicating continued robust demand for AI infrastructure.