Winnie Hsu

TSMC sales for the first two months of the year coming at about 30% year-over-year so that shows how the demand remains strong on that front... along with Oracle's better-than-expected earnings. Both pointed to a very solid AI outlook. Global AI infrastructure spending is completely insulated from Middle East geopolitical shocks and energy supply chain disruptions. As capital flees volatile commodity-linked assets, it will rotate into high-growth, cash-rich semiconductor and cloud infrastructure leaders that are demonstrating tangible revenue acceleration. LONG. AI hardware and infrastructure demand is overriding macroeconomic and geopolitical fears, making these names safe-haven growth assets. A broader macroeconomic recession triggered by sustained high energy prices could eventually force enterprise customers to cut IT and cloud capex budgets.

Samsung Electronics both actually up double digits earlier today and lots of optimism still in the stocks after valuations dropped about 25% since the January height, while the overall outlook for demand and memories to looks quite intact. South Korea is highly dependent on Middle Eastern oil imports. The sudden drop in oil prices removes a massive macroeconomic overhang and input cost pressure for the country. With the macro pressure relieved, the underlying fundamental strength of memory chip demand can drive a sustained recovery in Samsung's heavily discounted shares. LONG because the fundamental demand for memory chips remains strong while the primary macroeconomic headwind (energy costs) is subsiding. If the Middle East conflict re-escalates and oil spikes back above $120, South Korean equities will face renewed macro pressure regardless of chip demand.

Japanese stocks are seeing net inflows of $74 billion year-to-date, on track for the largest annual inflow since 2013. Japan is less concentrated and volatile, and offers good exposure to the AI supply chain as the AI trade broadens out.

TSMC sales for the first two months of the year coming at about 30% year-over-year so that shows how the demand remains strong on that front... along with Oracle's better-than-expected earnings. Both pointed to a very solid AI outlook. Global AI infrastructure spending is completely insulated from Middle East geopolitical shocks and energy supply chain disruptions. As capital flees volatile commodity-linked assets, it will rotate into high-growth, cash-rich semiconductor and cloud infrastructure leaders that are demonstrating tangible revenue acceleration. LONG. AI hardware and infrastructure demand is overriding macroeconomic and geopolitical fears, making these names safe-haven growth assets. A broader macroeconomic recession triggered by sustained high energy prices could eventually force enterprise customers to cut IT and cloud capex budgets.

The share really is in the tech sector with Tencent up about 6% leading gains. That's coming after the company released a new AI agent that is fully compatible with China's open hold... Citigroup in fact calling it potentially an inflection point for AI agents in China. Chinese tech giants are successfully moving from AI development to commercial deployment. A functional, widely compatible AI agent provides Tencent with a massive new monetization engine that is entirely insulated from Middle Eastern geopolitical volatility and Western trade sanctions. LONG because Tencent is reaching a commercial inflection point in AI that the market is just beginning to price in. Regulatory crackdowns by the PBOC or Chinese government on AI deployment, or broader weakness in the Chinese domestic consumer economy.