According to Bloomberg on May 30, investors believe that the IPOs of SpaceX, OpenAI, and Anthropic will trigger a new cycle of technology investment. A significant portion of the funds raised is expected to flow into Asian supply chains, including manufacturers of server components, specialty materials, cooling parts, and power equipment.
Asian hardware companies are already seen as major beneficiaries of the expanding data center construction. Increased investment in AI infrastructure has boosted the stock prices of major semiconductor firms like TSMC, Samsung Electronics, and SK Hynix, propelling them into the $1 trillion market capitalization club.
However, the rapid rise in the stock prices of large semiconductor firms has led some investors to be cautious about valuation pressures. As a result, analysts predict that the next phase of AI investment will broaden to include electronic components, server assembly, advanced materials, and power equipment.
Ken Wong, a portfolio specialist at Eastspring Investments in Hong Kong, stated, "AI IPOs could further fuel a capital investment boom at a time when Asian semiconductor stocks appear overheated. We are currently reducing our semiconductor exposure in favor of focusing more on electronic component manufacturers."
The competition for AI leadership has significantly increased investments in computing networks by major tech companies like Meta Platforms and Amazon. Bloomberg noted that the IPOs of SpaceX, OpenAI, and Anthropic could alleviate some concerns about the sustainability of funding amid rising debt levels.
Fabien Ip, a market analyst at IG International, suggested that the IPOs could lead to an additional $70 billion in AI spending on top of the $750 billion already committed by major hyperscalers. He remarked that the recent performance of semiconductor companies shows a clear ripple effect towards Asia, indicating that the AI rally is expanding beyond purely AI-related stocks.
Indeed, recent trends in Asian stock markets have shown strength in manufacturers of electronic components for servers and companies involved in semiconductor materials and technologies. South Korea's Samsung Electro-Mechanics and Japan's Ibiden have been among the top performers in the MSCI Asia index this year.
Investors are now shifting their focus beyond large semiconductor firms to companies whose AI infrastructure spending effects have yet to be fully reflected in their earnings, according to Bloomberg. The risk of concentration in specific stocks and limits on single-stock investments are contributing to the broader spread of AI investment across the supply chain.
Song Zhe, a senior investment specialist at BNP Paribas Asset Management, predicted that the next phase of the rally will be characterized by stock-specific trends rather than indiscriminate semiconductor trading. He noted that he is focusing on companies in Taiwan and China involved in advanced packaging, substrates, testing, optical connections, power, cooling, and servers, which have upward earnings forecasts that could support their valuations.
Bloomberg also reported that AI applications are emerging as a new investment area. Interest is growing in so-called "physical AI" fields, such as robotics and autonomous vehicles, which aligns with NVIDIA's expansion in related businesses and has drawn attention to partner companies like LG Electronics.
Power supply is identified as a critical bottleneck area. With the surge in data centers, there is increasing interest in nuclear and alternative energy sources, and rising oil prices due to the Iran conflict are stimulating demand for power-related investments, according to Bloomberg.
In the South Korean market, solar company HD Hyundai Energy Solutions and nuclear-related Daewoo Engineering & Construction have shown strong performance this year. In India, the Adani Group is expanding its environmentally friendly power-based data center business, driving up the stock prices of its energy affiliates.
Gian Si Cortesi, a fund manager at Gam Investment Management, assessed power supply as the "most underweighted bottleneck area." However, he warned that if AI demand does not justify the massive investment scale, companies may reduce capital expenditures, leading the market to face overcapacity and sharp valuation declines.
* This article has been translated by AI.
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