Investment in Asia: Opportunities in the Global AI Supply Chain

Spotlight offers insights into the Berenberg product universe and highlights key topics related to current market developments.

As the investment theme of generative AI came into focus in 2023, the trend has spread exceptionally fast across industries around the world. Similar to the 1980s, when the Internet began to transform our lives by enabling all the applications that are now essential, we expect generative AI to sustainably change business efficiency and user habits in the future and steadily increase investment interest in this area.

The first milestone was triggered by personal computer and internet, boosting semiconductor sales over USD 50 billion, followed by the trend of mobiles that almost tripled the demand. With the massive increase in daily data volumes, the irreversible trend of big data processing has become more important than ever. All tech-megatrends in the past have triggered strong semicon-ductor demand in waves lasting about a decade. We believe we are at the beginning of the era driven by generative AI and expect demand to increase in the long term.

The AI paradigm has changed, and Asia is very well positioned to profit from this structural megatrend, as almost 70% of semiconductors and server hardware are produced in Asia.

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Javier Garcia