JPMorgan Chase predicts a significant boost for Asian tech stocks, fueled by the continued growth of artificial intelligence.
A 15-20% Jump Predicted
The banking giant forecasts a 15% to 20% increase in Asian technology stocks by the end of 2025. This optimistic outlook is largely attributed to the expanding influence of AI.
AI: The Driving Force
JPMorgan analysts highlight AI’s role in driving this growth, citing increased capital expenditures in data centers in 2025 and strong projected growth in 2026. They advise against shifting away from AI-related stocks in the near future.
Semiconductors Leading the Way
The Bloomberg Asia Pacific Semiconductors Index, tracking semiconductor companies in the region, is already up over 12% this year, outperforming broader Asian equity markets. This points to strong AI demand.
Top Chipmakers to Benefit
JPMorgan expects leading chipmakers like Taiwan Semiconductor Manufacturing Co., SK Hynix Inc., Advantest Corp, and Delta Electronics Inc. to see continued share price increases and upward earnings revisions for at least the next year.
A Bleaker Outlook for Non-AI Stocks
Conversely, the bank holds a less optimistic view on non-AI sectors, such as manufacturers of PCs, smartphones, and consumer electronics. They anticipate further downward revisions to earnings for these companies due to weakening demand.
Disclaimer:
This information is for general knowledge and shouldn’t be considered investment advice. Always conduct thorough research before making any investment decisions./p>