THE APEX TIMES
In a recent market commentary, Morgan Stanley strategist Eric Bleeker said the damage from an AI-related selloff could leave Chinese AI equities vulnerable to another 10% to 15% decline, following an estimated $480 billion loss in less than four months.
Chinese AI-linked equities have come under renewed pressure, and Morgan Stanley is warning that investors may not be finished absorbing the shock. In a recent discussion carried by Yahoo Finance, strategist Eric Bleeker outlined a bearish scenario for the segment, suggesting the market could face another 10% to 15% drop after a crash that, according to the commentary, erased roughly $480 billion in market value in under four months.
The update frames the selloff as more than a one-off drawdown. Bleeker’s analysis, as summarized in the post, focuses on what “broke” in market pricing, how U.S. investors responded, and what warning signs that reaction may carry for American AI-exposed equities. The core message is that the underlying concerns behind the move have not fully played out, at least from Morgan Stanley’s perspective.
While the commentary points to a magnitude of losses, it does not spell out in the post the specific company-by-company catalysts or the detailed mechanism behind the “what broke” reference. Instead, it emphasizes the pattern of rapid repricing and the risk that sentiment remains fragile. In this view, the episode’s speed and scale are central, because they can leave investors with lingering doubts about near-term expectations for AI growth and monetization.
The discussion also highlights cross-border spillover between Chinese AI markets and U.S.-linked investor behavior. U.S. investors often watch Chinese AI developments for indicates about global demand, supply-chain momentum, and pricing power across semiconductors, cloud infrastructure, and related software. The post characterizes U.S. market reaction as part of what was “broken,” implying that correlated positioning and narrative-driven trading amplified the move rather than containing it locally.
In sector terms, the episode fits a familiar pattern seen in high-expectation technology baskets. When performance expectations become tightly linked to forward-looking outcomes, price can swing quickly with changes in demand visibility, regulatory risk, financing conditions, or incremental competitive pressure. Even without naming specific drivers in the post, the warning of another 10% to 15% decline suggests Morgan Stanley sees room for additional de-risking as investors adjust to a lower valuation baseline.
For U.S. investors with exposure to AI, Bleeker’s “warning signs” framing implies that the next phase is not only about China’s names but also about how the market might recalibrate in response to the same kinds of uncertainty. That could include reassessing the durability of AI-related earnings expectations, the pace of capex conversion into revenue, and the relationship between AI infrastructure spending and end-user adoption.
The post remains high-level on actionable specifics. It does not provide the exact list of Chinese AI equities affected, the implied probability distributions behind the 10% to 15% estimate, or the time horizon for the further decline. It also does not cite particular earnings revisions, guidance changes, regulatory decisions, or technical market triggers. As a result, investors have to treat the warning as a directional risk assessment rather than a detailed forecast with documented assumptions.
The card network reported that annualized stablecoin settlement volume has surpassed $25 billion, describing a sharp expansion in activity where stablecoins are used as a value-transfer mechanism.
The bank raised its price target for the British insurer and cited scope for stronger performance in its UK insurance business.
In a recent note reported by Yahoo Finance, the bank pointed to what it described as misconceptions about “powered-shell” bitcoin mining providers and reiterated a favorable industry view for TeraWulf.
The bank’s updated assumptions push its SpaceX valuation higher, based on expected infrastructure spending in 2027 and a near-term compute capacity target that is below management’s stated goal.
A Yahoo Finance market piece compares the outlook for Visa (V) and Block (SQ), focusing on expected growth momentum, valuation considerations, and how each company’s payments ecosystem could evolve.
In a new valuation note reported by Yahoo Finance, Goldman Sachs says CoreWeave’s capital plan depends on how much of its backlog is effectively funded by prepayments, with estimated incremental debt ranging from about $20 billion to as high as $38 billion.
