Veteran emerging markets investor Mark Mobius says U.S. technology companies focused on emerging markets offer the best investment opportunities in the coming year.
“The U.S. market is going to continue to do well. As you know, technology is already doing well. So what I would do is focus on those companies and industries that are using technology to increase productivity,” Mobius Chairman of Emerging Opportunities Fender said last week Said in an interview with CNBC.
U.S. companies targeting China and India and other major emerging market economies are well-positioned, he added. “I focus on companies that have a global reach and are producing, exporting and selling in those countries, because that’s where the growth is.”.
Investors should also consider companies that take advantage of what Mobius calls “accelerated information,” such as chip manufacturers.
“I call artificial intelligence accelerated information, because artificial intelligence has no artificial component and is not smart. But it can obtain more information faster and analyze this information more effectively,” he said.
His comments come as emerging markets that produce semiconductors are experiencing an economic boom, with Taiwan – where most advanced chips in circulation are made – being particularly successful.cess story.
ASEAN countries in Southeast Asia are also enjoying an increase in foreign investment. For example, Malaysia’s focus on chip production has made it deeply integrated into global supply chains.
Abdul Rasheed Ghaffour, governor of Malaysia’s central bank, said in an interview with CNBC at the International Monetary Fund’s annual meeting in Washington, D.C., in October that the country’s semiconductor exports accounted for 7% of the world’s total.
Heading towards a tech bubble?
Mobius said there is “no doubt” a tech bubble is coming, given the valuations of the so-called “Seven Big Tech Stocks.” letter, Amazon, apple, Yuan, MicrosoftNVIDIA and Tesla.
But while he acknowledged that some stock prices “went too far too fast,” he wasn’t worried.
“You have to remember that you can’t just look at the P/E ratio, which is a normal metric that people use to evaluate whether an industry or a stock is too expensive because the growth rates of these companies are so great,” he said.
Nvidia is a major beneficiary of the current artificial intelligence boom, and its next-generation artificial intelligence chip Blackwell is now in the spotlight. The company’s shares have nearly tripled so far in 2024 and are up more than 170% so far this year, making it the world’s most valuable public company.
However, some investors worry that the artificial intelligence giant will not be able to sustain its rapid growth, although Mobius remains optimistic about the prospects of Nvidia and other large technology stocks.
“(The Big Seven) profits are growing at an incredible rate and you have to expect that to continue. I’m not too worried about most of these companies being too expensive and they’re going to continue to do well,” Mobius added.
“Of course, there are new companies coming in that are also benefiting from these changes.”
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