Top Economist Warns 'High Concentration' of Semiconductor Stocks Isn't a Real Bull Market: 'Beware'
Steve Hanke warns that semiconductors’ 15% market share and narrow AI-led gains make the U.S. stock rally vulnerable despite strong earnings.
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Alibaba stock slides nearly 4% premarket after raising $10.2B in a Hong Kong share placement to fund its massive AI strategy.
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Steve Hanke warns that semiconductors’ 15% market share and narrow AI-led gains make the U.S. stock rally vulnerable despite strong earnings.
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The article compares Alibaba and Coupang as investment opportunities in 2026. Alibaba, despite facing regulatory uncertainty, AI spending pressures, and geopolitical risks, is recommended as the better buy due to its stronger profitability (10.1% net margin), attractive valuation (16.9x forward P/E), and double-digit AI cloud revenue growth. Coupang, while growing faster (14.1% YoY revenue growth), faces record regulatory fines, perjury investigations, and shareholder lawsuits with a thin 0.6% net margin, making it a riskier choice.