Investment in Asia: Opportunities in the Global AI Supply Chain
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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.
Authors
Javier Garcia
Javier Garcia has been a portfolio manager at Berenberg since October 2022. He began his investment career in 2002 at Julius Baer Asset Management (later Swiss & Global Asset Management), where he became Co-Manager of the JB Global Emerging Markets Equity Fund in 2006 and additionally served as Lead Fund Manager of the JB Black Sea Fund and the JB Russia Stock Fund from 2009 onwards. From 2013 to 2022, he has been Senior Portfolio Manager Emerging Markets Equities at UBS Wealth Management. In this role, he built and managed the Global Emerging Markets and Asian Equities business. Javier Garcia holds a Bachelor in Business Administration and Economics from the University of Zurich and is a CFA Charterholder.
Javier Garcia
Portfoliomanager
