AI Trade Cools as Asia Rotates and Indonesia Cracks | Insight with Haslinda Amin 06/05/2026
Speakers
Grace Tam
— Chief Investment Adviser, BNP Paribas Wealth Management
Devina Mehra
— First Global
Anthony Stephens
— Bloomberg Reporter
Summary
The episode covers a cooling AI trade with rotation from tech to financials/industrials, a Broadcom CEO interview emphasizing organic AI growth over M&A, and BNP Paribas strategist Grace Tam advising to buy the dip in semiconductors, go long copper and aluminum, and avoid Indonesia. It also previews India’s RBI decision amid a falling rupee and discusses Indonesia’s market rout driven by policy uncertainty and high energy prices.
- Asian markets decline as AI-led rally cools and rotation accelerates.
- Broadcom CEO Hock Tan says generative AI demand is insatiable, making M&A a distraction.
- BNP Paribas' Grace Tam calls the AI correction a healthy buying opportunity for semiconductors.
- Tam recommends diversifying AI infrastructure bets into copper and aluminum as commodities enter a super cycle.
- Tam is underweight Indonesia due to weak currency, policy uncertainty, and fiscal constraints.
- India’s central bank is expected to hold rates while the rupee hits record lows.
- Indonesian authorities tighten export controls and the central bank hikes rates to stem outflows.
- Sentiment on Indian equities is negative, but valuations are not extreme, a guest notes.
Trade Ideas
Buy semis on AI correction.
The AI-driven correction in semiconductor stocks is a healthy pullback and a buying opportunity given robust earnings and still reasonable valuations. Overcrowded positioning may drive short-term volatility, but the fundamental AI demand story remains intact, making any dip a chance to add exposure.
Long copper and aluminum.
Copper and aluminum are in a long-term structural bull market driven by a commodity super cycle, tight supply, and underpriced inflation risk. Recent consolidation presents a buying opportunity to position for the second half of 2026, as inflation fears and energy costs should support further upside.
Avoid Indonesia equities.
Indonesia is underweight due to a lack of positive catalysts, a weak currency (worst EM performer YTD), domestic policy uncertainty, high energy prices, and fiscal constraints that limit stimulus. Sentiment is very low and there is no clear trigger to turn more constructive.
