AI Sector Correction Far From Over, Fund Rotation From Hot Tech to Old Economy Continues

According to BlockBeats, economist Hong Hao stated on July 23 that the ongoing AI sector stock adjustment is an intermediate correction rather than the end, with further downside technically likely. The correction remains far from complete based on broader market indicators.

Hong noted that capital is rotating from overheated AI and semiconductor sectors to previously overlooked old-economy and legacy-tech names, including internet giants like Tencent, Alibaba, and Meituan, which have already posted notable gains. He expects broad-based gains across the old economy rather than localized speculative moves, assuming investors remain optimistic on AI's productivity gains.