AI stocks are rapidly emerging as pivotal drivers of the region’s equity markets, underpinned by a robust domestic appetite for automation and generative technology.
A Bloomberg regional semiconductor index has risen over 12% this year to outperform an Asian equity gauge, and resilient demand for AI memory chips from big tech providers may drive further gains.
JP Morgan’s top stock picks include the region’s largest chipmakers, including Taiwan Semiconductor Manufacturing Co., SK Hynix, Advantest Corp and Delta Electronics.
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Those shares should continue their upward momentum in the next 12 months, as demand is not an issue and earnings will continue to be revised up, they wrote.
The bank is more cautious on non-AI stocks, such as makers of personal computers, smartphones and consumer devices. Earnings downward revisions may continue as the impact of China consumption subsidies fades, the report added.
