Archive · 17 Aug 2025
AI Investments Driving Growth in Emerging Markets
Imagine a lot of money is being invested in new computer smarts, called Artificial Intelligence (AI).
Investors are now putting money into companies in countries like China, Taiwan, and South Korea that are good at AI.
These companies are doing really well, even better than the big tech companies in the US.
This is because AI is being used in many areas like cloud computing and electric cars.
Experts think this trend could continue for many years and help these countries' economies grow.
Even though some companies in these countries haven't been doing great lately, the AI part has been doing very well, making investors happy.
Emerging-market funds are focusing on artificial intelligence (AI) to drive returns.
AI companies are top contributors to the rally in the Bloomberg EM stocks index this year.
Companies like Hon Hai Precision and others in Taiwan and South Korea are expected to be key drivers.
AI adoption is accelerating across various sectors, including cloud computing and electric vehicles.
The AI sector is expected to continue growing, boosting investor confidence in emerging markets.
- Who
- Asset managers like AllSpring, GIB, and investors generally are pivoting towards AI.
- What
- Emerging-market funds are investing in AI to drive future returns.
- When
- The trend is happening now, with predictions of it lasting 10-20 years.
- Where
- Focus on emerging markets, particularly Taiwan, South Korea, and potentially China, India, Latin America, and the Middle East.
- Why
- Because AI is seen as a key growth driver, offering the potential for strong returns and overcoming previous earnings issues.
Investors
Not Applicable
Earnings Potential
Investors
Optimistic view of what AI can evolve into from a corporate earnings perspective.
Not Applicable
Not applicable
- Key Players
- AllSpring, GIB Asset Management, Taiwan Semiconductor Manufacturing Co., Tencent, Alibaba, Samsung, SK Hynix, Xiaomi
- Index Reference
- Bloomberg EM stocks index
- Sector Performance
- AI-heavy information-technology sector has consistently met earnings projections.
- Future Outlook
- Average estimate of forward 12-month earnings for EM tech stocks has increased 15%.
- Geographic Focus
- Taiwan, South Korea, China, India, Latin America, and the Middle East