Svmuu reports According to JPMorgan's forecast, major US tech companies will invest up to $700 billion in capital expenditures by 2026, with the majority allocated to artificial intelligence infrastructure. Companies like NVIDIA rely on Asian suppliers for 90% of their hardware.
Estimates for AI capital expenditure this year and next have been rising recently, a trend that benefits derivative products related to this spending in Asia. The capital expenditure of major US tech companies on AI hardware has primarily benefited Asian tech enterprises, while having a relatively minor impact on the US GDP.
JPMorgan emphasizes that earnings growth in emerging markets is not only more attractive but also comes with more reasonable valuations. The price-to-earnings ratio for this asset class is low in absolute terms and, compared to developed markets, "is at historical lows." Additionally, investor positions remain low, and capital inflows are accelerating. (Jin Shi)