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KGI Securities: US Political Shifts Spark Volatility, but AI Long-Term Cycle Remains Intact
Electronic Technology · Semiconductors · economic_daily · 2026-11-09
KGI Securities suggests that recent market volatility stems from US political uncertainty regarding AI infrastructure, but maintains that the long-term AI growth cycle remains robust.
What Happened
Political Uncertainty Weighs on Markets: Recent volatility in US and Taiwan stock markets has been fueled by concerns that shifting US political landscapes could raise regulatory hurdles for AI data centers. Investors are particularly wary of how new policies might impact land, power, and environmental approvals for critical AI infrastructure.
AI Growth Cycle Remains Robust: KGI Securities argues that the current market repricing is focused on the pace and cost of infrastructure development rather than a rejection of AI demand. While short-term political shifts may affect project timelines, the fundamental demand for computing power persists, indicating the long-term tech cycle is not over.
Navigating Market Volatility: Investors are advised to avoid panic selling during sharp market pullbacks, as these fluctuations are often driven by temporary regulatory concerns. KGI notes that while policy changes may influence the speed of construction, the underlying growth trajectory of the AI sector remains firmly in place.
Reassessing Asset Allocation: Market corrections serve as a valuable opportunity for investors to re-evaluate their risk tolerance and liquidity needs. KGI recommends reviewing portfolio allocations across stocks, bonds, and cash, while maintaining prudent control over leverage to navigate ongoing market instability.