The Rise of Artificial Intelligence Investments in Emerging Markets

by Annabelle Stephenson
in *AR, *CH, *DE, *ES, *FR, *IT, *JP, *KO, *PT, *RU, *TR, *UA, News, xBG, xCS, xDA, xEL, xET, xFA, xFI, xHE, xHR, xHU, xLT, xLV, xRO, xRS, xSI, xSK, xSV
on 7 April 2024

Odkrywanie potencjału sztucznej inteligencji w rynkach wschodzących

As major money managers around the world seek the next wave of winners in the field of artificial intelligence (AI) beyond the United States, there is a growing interest in exploring the potential of AI investments in emerging markets.

Goldman Sachs Group Inc. is actively seeking to invest in AI supply chain component manufacturers, such as cooling systems and power supplies. JPMorgan Asset Management is focusing on traditional electronics manufacturers that are becoming leaders in the AI field. Meanwhile, Morgan Stanley is targeting companies that are using AI to transform business models in non-tech sectors.

AI-related stocks in emerging markets have already seen a surge of $1.9 trillion this year. Leading the way are semiconductor companies from Taiwan and South Korea, such as Taiwan Semiconductor Manufacturing Co. and SK Hynix Inc. Despite this growth, most AI-related stocks in these markets still offer better value compared to their U.S. counterparts.

Developed markets like the United States are also experiencing rapid growth. Analysts are predicting a 61% increase in profits for emerging-market tech firms as a whole, compared to a 20% growth forecast for tech firms in the United States.

The standout stars in the AI sector are companies that have been technological leaders even before the rise of AI, such as TSMC and Hon Hai Precision Industry Co.

Investment funds like JPMorgan are putting their money into major semiconductor companies like MediaTek Inc. that are at the forefront of the AI industry. They are also investing in ETFs where the top ten shareholders are AI-related companies.

In countries such as South Korea and Vietnam, AI companies are attracting investor attention. These are often firms that provide IT services and are developing their own AI models using local languages.

While investing in AI in emerging markets presents promising opportunities, it also comes with risks. The markets in these regions are closely tied to the U.S., meaning that any AI sell-off could have global repercussions. On the flip side, if market growth spreads, other sectors may catch up, potentially leaving AI names lagging behind.

Investors are increasingly looking beyond U.S. tech stocks and turning to emerging markets for AI investments, signaling a shift in the investment landscape. As AI continues to evolve and grow, there are ample opportunities for investors to tap into the potential of this transformative technology.

### FAQ

#### What are the top regions for AI investments outside the United States?
Emerging markets such as Taiwan, South Korea, and Vietnam have seen significant growth in AI investments, attracting the attention of major investors.

#### Which industries are leading the way in AI adoption?
Semiconductor companies, electronics manufacturers, and IT service providers are among the industries that are taking the lead in adopting AI technologies in emerging markets.

#### What are the risks associated with investing in AI in emerging markets?
Investing in AI in emerging markets comes with risks, including market volatility, potential regulatory challenges, and dependencies on global market trends. Investors should carefully assess these risks before making investment decisions.

The source of the article is from the blog combopop.com.br