Asian technology shares are prepared to come together from 15% to 20% this year, motivated by the optimism of investors in artificial intelligence, according to analysts of JPMorgan Chase & Co.
The company has cited the increase in capital expenditure in data centers and continuous profile improvements in key semiconductor names as main rear winds.
“The AI will continue to direct this high level on the growth of the CAPEX data center in 2025 and more confidence in the growth of 2026,” wrote Gokul Hariharan in a report.
“We do not recommend any significant rotation far from AI actions in the next three months and would prefer” to stick to the winners.
The main choices of JPMorgan include regional chip giants such as Taiwan Semiconductor Manufacturing Co. (TSMC), SK Hynix Inc., Advantest Corp and Delta Electronics Inc., which should all benefit from constant demand and positive profits revisions over the next year.
AI AI shares have exceeded broader Asian stock markets this year, as the Bloomberg regional semiconductor index reflects, which increased by more than 12%.
A robust demand for AI memory chips of world technological majors has kept occupied supply chains and optimistic investors, semiconductor companies emerging as the clearest beneficiaries of the AI arrow.
SK Hynix rallies Tuesday; Analysts expect strong gains
Copy the link to the section
SK Hynix’s shares jumped up to 9.1% on Tuesday, leading a wider rally in the actions of South Korean fleas and lifting the Kospi index before most regional references, which also experienced gains after the announcement by President Trump of a ceasefire in the Middle East.
The stock is underway to publish its clearest daily gain in more than two months.
SK Hynix, a South Korean supplier of wide-band memory chips (HBM) for the leader of the American AI Nvidia, is widely awaited by analysts display solid revenues in the coming quarters, fueled by a sustained demand for the global BOOM of AI.
The company is also considered to be a main beneficiary of the new AID-focused agenda on South Korea under the direction of President Lee Jae Jae-Myung, who promised an investment of 100 billions (around 72.93 billion dollars) to transform the country into a world leader in AI.
Geopolitical opposites remain
Copy the link to the section
Meanwhile, the founder of Softbank, Masayoshi, is said to be in discussion with TSMC to co-develop an AI and robotic manufacturing center of $ 1 Billion in Arizona, nicknamed “Project Crystal Land”.
According to Bloomberg, Shenzhen, the project is envisaged as an area of sprawling innovation for new generation industrial robots.
Despite the positive feeling, world flea manufacturers are faced with renewed geopolitical pressures.
TSMC’s actions fell on Monday following a reuters report that the US Ministry of Commerce plans to revoke the authorizations that allow companies such as TSMC, Samsung and SK Hynix to send American equipment to their Chinese plants.
Jefferies analysts believe that this decision could be a Trump administration negotiation tactic in the midst of commercial negotiations with China.
“The revocation would probably hurt these businesses than in China,” analysts wrote, adding that the United States still wants major flea manufacturers to deepen their investments at the national level.
Prudent perspectives beyond 2025
Copy the link to the section
While short-term forecasts remain optimistic, some analysts warn that the semiconductor cycle can face challenges by 2026.
Phelix Lee de Morningstar said in a note that the sector probably entered the early phase of a descent cycle.
The concerns include high assessments, uncertainty about prices and a potential gap between capital expenditure and long -term demand.
LEE estimates that capital expenses of large American and Chinese technological companies will exceed $ 300 billion in 2025, representing an increase of 40% in annual shift.
“This defines a high bar to support the momentum in 2026,” he noted. Consequently, Morningstar recommends that investors focus on the best class names such as TSMC and Globalwafers.
The non -AI sectors see a limited advantage
Copy the link to the section
The JPMorgan report has also urged caution on the technological sectors not linked to AI, such as manufacturers of smartphones and PCs.
These companies can continue to see downgrades on profits in the middle of the weakness of consumer demand and the discoloration of China’s consumption grants.
While the AI breed reshapes the region’s technological landscape, investors focus on the main players who lead the transformation. While short -term catalysts remain in place, navigation on long -term risks can be crucial for sustained gains.
