Chip Rout Deepens on Circular Funding, China Fears | The Asia Trade 7/28/2026

Watch on YouTube ↗  |  July 28, 2026 at 04:48  |  1:34:00  |  Bloomberg Markets
Speakers
Garfield Reynolds — Markets Reporter/Editor, Bloomberg
Anthony Stevens — Bloomberg Market Producer
Charlotte Yang — Asia Equities Reporter, Bloomberg
Brian Levitt — Global Market Strategist, Invesco
Grant Beaty — Software dev & racecar driver turned L/S fund manager
Mandeep Singh — Senior Analyst, Bloomberg Intelligence
Sara Vakhshouri — President, SVB Energy International
Haidi Stroud-Watts — Anchor, Bloomberg
Avril Hong — Reporter, Bloomberg Markets

Summary

The video covers a sharp selloff in AI and chip stocks driven by Nvidia's circular financing concerns and reports that China is mass-producing DUV lithography machines, threatening ASML and Korean memory makers. Oil prices extend declines on US-Iran peace talks and hopes of reopening the Strait of Hormuz. Ahead of central bank decisions (Fed, BOJ), Invesco's Brian Levitt sees the AI pullback as a healthy recalibration and favors broadening trades into small caps, EM, and yen strength. Commodity analysts flag tight copper supply and resilient iron ore, while SK Hynix's ADR trades below its IPO price amid peak memory margin fears.

  • AI chip rout deepens on Nvidia's $750B circular financing deals and fears of unsustainable AI capex
  • China's reported DUV lithography mass production threatens ASML's dominance and Korean memory valuations
  • Oil prices extend losses as US and Iran engage in diplomatic talks and Strait of Hormuz reopening is discussed
  • SK Hynix ADR slumps below US IPO price amid concerns over peak margins and hyperscaler alternatives
  • Invesco strategist says AI selloff is a recalibration, not structural end; broadens into small caps and EM
  • Yen seen strengthening on narrowing US-Japan rate differentials as BOJ eyes further hikes
  • Copper prices supported by tight supply and flat mine growth; iron ore resilient above $100/ton
  • KOSPI under pressure from retail deleveraging and foreign selling, raising downside risk
Ideas
Garfield Reynolds Markets Reporter/Editor, Bloomberg 9:25
Korean memory chip cycle peak risk.
The AI chip boom has extended so much that fear of an extraordinary bust is justified; slowing expectations for AI profits, history of memory boom/bust cycles, Chinese DUV competition, and attractive investment-grade bond yields (5-8%) make bets on AI chipmakers like SK Hynix and Samsung unattractive. If this is the peak, it is time to exit for those with profits, and retail deleveraging adds to downside pressure.
005930.KS EWY 000660.KS MED
Anthony Stevens Bloomberg Market Producer 26:19
China DUV mass production hits ASML, Korea.
China's reported mass production of DUV lithography machines threatens ASML's dominance and fundamentally alters the valuation picture for Korean memory chips and components. DRAM faces immediate impact, and the loss of a structural moat will push Korean chip valuations back to cyclical levels, justifying further selloff.
ASML HIGH
Anthony Stevens Bloomberg Market Producer 30:44
Apple, Microsoft, Oracle gain from cheaper chips.
US mega-cap technology companies like Apple, Microsoft, and Oracle will benefit from cheaper chips or cheaper LLMs from China, as seen in their strong trading keeping the S&P flat, making them relative winners in the AI turbulence.
ORCL AAPL MSFT MED
Brian Levitt Global Market Strategist, Invesco 54:05
Buy Magnificent 7 on dip.
The AI selloff is a recalibration, not the end of a structural trend; demand remains incredibly robust, and the Magnificent 7 have historically bottomed after breaking below the 200-day moving average, so this dip presents a buying opportunity in AI/tech leaders.
MAGS MED
Brian Levitt Global Market Strategist, Invesco 56:26
Broaden into small caps and EM.
The broadening trade is working, with investors shifting into other parts of the market such as smaller-cap U.S. stocks and emerging market stocks, as global growth momentum continues and the Fed avoids overtightening, supporting further gains in these areas.
IWM EEM MED
Brian Levitt Global Market Strategist, Invesco 57:31
Yen strengthens as rate differential narrows.
The interest rate differential between the US and Japan is expected to narrow as the BOJ gradually hikes rates while the Fed does not aggressively tighten, which will support a stronger Japanese yen.
JPY MED
Grant Beaty Software dev & racecar driver turned L/S fund manager 83:52
Copper supply tight, prices elevated.
Copper prices remain well supported above $13,000/ton due to extremely tight supply, with miners struggling to deliver new tons, mine supply growth near zero this year, and demand resilient; prices sustainable at current levels even if geopolitical risks ease.
COPPER HIGH
Grant Beaty Software dev & racecar driver turned L/S fund manager 87:31
Iron ore resilient, $100 floor.
Iron ore prices keep surprising on the upside, supported by strong Chinese demand and cost support around $100/ton, with high-cost producers pulling back when prices dip, making iron ore resilient.
Iron Ore MED
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This Bloomberg Markets video, published July 28, 2026, features Garfield Reynolds, Anthony Stevens, Brian Levitt, Grant Beaty discussing 005930.KS, EWY, 000660.KS, ASML, ORCL, AAPL, MSFT, MAGS, IWM, EEM, JPY, COPPER, Iron Ore. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Garfield Reynolds, Anthony Stevens, Brian Levitt, Grant Beaty  · Tickers: 005930.KS, EWY, 000660.KS, ASML, ORCL, AAPL, MSFT, MAGS, IWM, EEM, JPY, COPPER, Iron Ore