Tai Hui

The technology moat for AI chips remains deep and wide. Even if US hyperscalers slightly slow capex, the structural demand for data centers ensures strong pricing power, making the sector a buy on dips.

Legacy Chinese internet giants are struggling to monetize their heavy AI capex amid a tough macro environment, making Chinese robotics and hardware companies more attractive as they generate exciting new applications.

Strong US and global economic growth, along with solid corporate earnings, provide enough momentum for the stock market to weather the impact of rising bond yields and debt servicing costs.

Korea and Taiwan equity fundamentals remain robust: KOSPI is still single-digit P/E, massive earnings growth has matched performance, semiconductor shortages and pricing power are sustained, and earnings will not collapse as long as AI investment continues.

China's broad indices have disappointed because they lack exposure to AI and semiconductors that drove North Asian markets; investors should focus on specific sectors like AI and semiconductors within China, which are benefiting from policy support and resources.

Oil prices will probably stay above $80 for some time because it will take weeks to months for Strait of Hormuz flows and inventories to fully normalize after the disruption. The reopening avoids the worst-case scenario but lingering shortages will keep prices elevated.

Investors should broaden beyond technology into cyclically sensitive sectors like financials, industrials and consumer discretionary because AI/tech momentum is high and valuations may be stretched, while a cyclical recovery can emerge.

Investors should broaden beyond technology into cyclically sensitive sectors like financials, industrials and consumer discretionary because AI/tech momentum is high and valuations may be stretched, while a cyclical recovery can emerge.

Investors should broaden beyond technology into cyclically sensitive sectors like financials, industrials and consumer discretionary because AI/tech momentum is high and valuations may be stretched, while a cyclical recovery can emerge.

Tech earnings are seen as resilient, able to protect profit margins. Nvidia trading at ~20x P/E is noted as historically cheap, with fears centered on overinvestment, not macro. "Staying invested, especially in some of the equity markets, for example, the broader U.S. market, not just in technology" is advised. The sector has sold off on macro/fear of overinvestment, not a collapse in earnings power. The geopolitical ceasefire removes a major macro overhang, allowing investors to refocus on strong cash flow generation and resilient models. The sector offers value after a derating, with strong underlying fundamentals that are now more likely to be recognized in a stabilizing macro environment. A severe global recession hits tech spending harder than expected, validating overinvestment fears.