AI fuels emerging markets

Investment funds are pouring capital into AI-linked firms, betting on strong long-term returns. Managers expect new technologies to support emerging markets for a decade, Bloomberg reports. Gains are being driven by Asian semiconductor leaders and firms like Tencent, Alibaba, Samsung, SK Hynix, and Xiaomi, which together contributed over a third of this year’s Bloomberg Index growth. Taiwan’s Foxconn, boosted by AI server demand, is another standout.

Citi analysts say emerging market AI stocks are outperforming even the US “Magnificent Seven.” Kunal Desai of GIB Asset Management predicts up to a third of future profits in these markets may come from AI.

Yet warnings of a bubble are growing. OpenAI CEO Sam Altman says investor enthusiasm echoes the late-1990s internet boom. Ray Dalio and Joe Tsai urge caution, though others stress AI’s fundamentals remain strong despite rising overvaluations.

Source: pb.pl