Famed investor and founder of Orient Harbor, But Danbin, recently engaged in a deep-dive dialogue covering the July market slump, the AI bubble debate, the next market drivers, and investment directions for the coming 5-10 years. He asserted that the recent correction is merely a minor blip within the broader AI supercycle. He illustrated this by comparing the market's perspective to viewing ocean waves—turbulent from the shoreline, yet calm from a high vantage point. Looking back a decade from now, the July fluctuation will likely be a distant memory, he suggested.

But Danbin emphasized that AI is the dominant theme of this era, advocating for a ten-year bull market outlook. He draws parallels to previous technological epochs—hardware, the internet, and mobile—which each spanned over a decade. He posits that AI will not conclude in a mere three or four years, and that the recent downturn should be viewed as a buying opportunity within a wave-like, upward trajectory. He believes the current AI landscape fundamentally differs from the dot-com bubble, noting that leading companies are already generating positive feedback, with some commercial cycles proving viable and capital expenditure remaining sustainable.

Drawing on his experience, But Danbin referenced his firm’s recent strategy of selling leveraged instruments like TQQQ and FNGU earlier in the year to rotate into storage and Intel, while adding to positions during dips. His overseas fund, Orient Harbor, currently holds approximately 25% in storage-related stocks. He also mentioned employing a structured strategy of selling double the position at elevated target prices to reduce volatility and enhance portfolio stability, with proceeds from this strategy partially funding purchases in SK Hynix and Apple. He noted that while the logic for A-share storage companies is sound, their valuations are relatively expensive, necessitating more flexible, tactical trading.

Looking ahead, But Danbin remains highly optimistic about AI's transformative impact across industries such as autonomous driving, robotics, and nanomedicine, foreseeing immense opportunities in both hardware and applications. He maintains that industry leaders are likely to achieve new highs, as the current phase resembles the 1994 consolidation year within the internet era, not the cycle's end. He advises investors to monitor capital expenditure trends as a key indicator, warning that reduced spending by hardware giants could trigger significant sell-offs, whereas companies like Google might increase dividends instead. He concluded that, despite short-term challenges, the AI-driven bull market has the potential to persist for a decade or more, underpinned by the industry's robust profitability and the immense scale of the ongoing technological revolution.