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Artificial intelligence
TechTech Trends

Who’s the new Nvidia? Wall Street hunts for next wave of AI winners beyond the US

  • AI stocks are already leading a US$1.9 trillion rebound in emerging markets this year, with TSMC and SK Hynix accounting for 90 per cent of gains
  • Analysts see a 61 per cent increase in earnings for emerging-market AI tech firms as a whole, compared to a 20 per cent rise for US peers

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Some of the world’s biggest money managers are hunting for the next wave of artificial intelligence winners in emerging markets for better value and a bigger pool of options. Image: Shutterstock
Bloomberg
Some of the world’s biggest money managers are searching for the next wave of artificial intelligence (AI) winners beyond the United States.
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At a time when the global euphoria about AI has propelled a three-fold surge in Nvidia Corp and a 50 per cent jump in a key US index for semiconductor manufacturers in less than a year, investors are pointing toward emerging markets for better value and a bigger pool of options.
The asset management arm of Goldman Sachs said it is looking specifically for stakes in the manufacturers of AI supply-chain components, such as cooling systems and power supplies. JPMorgan Asset Management favours traditional manufacturers of electronics that are morphing into AI leaders, while investment managers at Morgan Stanley are betting on players where AI is reshaping business models in non-tech sectors.

“We see AI as a growth driver in emerging markets,” said Jitania Kandhari, deputy chief investment officer at Morgan Stanley Investment Management. “While we have previously invested in direct AI beneficiaries like semiconductors, going forward it will be key to look for companies in different industries that are adopting AI to enhance earnings.”

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Apple supplier Foxconn to build ‘AI factories’ using US hardware leader Nvidia’s chips and software

Apple supplier Foxconn to build ‘AI factories’ using US hardware leader Nvidia’s chips and software
AI stocks are already leading a US$1.9 trillion rebound in emerging markets this year, with Taiwanese and South Korean chip companies such as Taiwan Semiconductor Manufacturing Co (TSMC) and SK Hynix accounting for 90 per cent of the gains, according to data compiled by Bloomberg.
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