Mukesh Ambani's RIL in spotlight as world's biggest fund managers hunt for AI winners beyond the US
At a time when the global euphoria about AI has propelled a three-fold surge in Nvidia Corp. and a 50% 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 Group Inc. said it’s looking specifically for stakes in the manufacturers of AI supply-chain components, such as cooling systems and power supplies. JPMorgan Asset Management favors 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.”
AI stocks are already leading a $1.9 trillion rebound in emerging markets this year, with Taiwanese and South Korean chip companies such as Taiwan Semiconductor Manufacturing Co. and SK Hynix Inc. accounting for 90% of the gains, according to data compiled by Bloomberg.
Despite this rally, most emerging-market AI stocks still offer far better value than their US peers. While Nvidia trades at 35 times its projected earnings, Asian AI giants are typically valued between 12 and 19 times.
