The listing plans of SpaceX, OpenAI and Anthropic are reshaping investors’ layout logic for Asian technology stocks.

Market participants generally expect that the new wave of capital expenditures brought about by the financing of these three companies will provide a strong catalyst for the Asian hardware supply chain and promote the spread of AI-themed transactions from leading chip stocks to a wider range of electronic components, cooling equipment, power infrastructure and other segments.

According to calculations by IG International market analyst Fabien Yip, the listing of the above three companies may drive a total of US$70 billion in additional AI spending. Adding to the more than US$750 billion in capital expenditures committed by major hyperscale cloud service providers, market concerns about the sustainability of AI infrastructure financing are expected to be alleviated to a certain extent.

The valuation of chip stocks is under pressure, and funds are looking for new lowlands

The wave of data center construction has made Asian hardware companies the core beneficiaries of this round of AI market. However, after the rapid rise, valuation pressure on some mainstream targets is accumulating.

Ken Wong, Asia equity portfolio expert at Eastspring Investments Hong Kong, said:

AI IPO may further promote the capital expenditure boom at a time when Asian chip stocks are already overvalued.

He revealed that his team currently underweights semiconductors in its Asian technology strategy and instead focuses on electronic component manufacturers.

Capital concentration restrictions and single-stock holding limits also objectively push fund managers to extend downstream of the supply chain.

Jupiter Asset Management Portfolio Manager Sam Konrad is optimistic about Hon Hai Precision Industry and Quanta Computer's server assembly business, as well as chip design company MediaTek, because:

The AI capital expenditure cycle will last for several years, and investors tend to look for targets that directly benefit but still have low valuation multiples.

Supply chain bottlenecks are spreading, and each segment shows its capabilities

As the shortage of semiconductors spreads from the chip side to the downstream, the imbalance between supply and demand is intensifying, attracting funds to deploy in advance.

Since the beginning of this year, the leading stocks in the MSCI Asia Broad Base Index, including South Korea's Samsung Electro-Mechanics and Japan's Ifei Electric, are both representative companies in the field of server electronic components.

IG's Yip also named Japanese bathroom brand Toto, which provides ceramic materials to chip manufacturing equipment and is a "remote" beneficiary in the AI investment chain.

Song Zhe of BNP Paribas Asset Management believes that the next stage of the market "should be a divergence of individual stocks rather than indiscriminate buying of semiconductors."

The team focuses on Chinese companies in advanced packaging, substrates, testing, optical interconnection, power, cooling and server-related fields that "can still support valuations with rising profits."

Power supply has become a key bottleneck, and energy stocks are sought after by funds

The rapid expansion of data centers has made power supply the next significant bottleneck.

Nuclear energy and new energy have therefore received more attention, especially in the context of the Iran war pushing up oil prices, and the logic of clean energy substitution has been further strengthened.

The Korean market leads the world this year, with solar company HD Hyundai Energy Solutions and nuclear energy engineering company Daewoo E&C both ranking among the top gainers.

In India, Adani Group promotes the layout of green power supply data centers, driving the strength of its energy sector and becoming one of the few AI concept beneficiaries in the Indian market.

GAM Asset Management Fund Manager Jian Shi Cortesi regards electricity as "the most underweighted bottleneck track", but also warns of risks: the uncertainty of the second phase of the AI market is higher than that of the first phase.

If the actual demand for AI cannot support the current scale of investment, companies may reduce capital expenditures. At that time, the market will face the risk of infrastructure oversupply and a sharp correction in valuations.

Swiss-Asia Portfolio Manager Brian Ooi remains concerned about the direction of power equipment such as transformers, fuel cells, cables, and gas turbines, and views the financing actions of SpaceX, OpenAI, and Anthropic as positive signals for continuing to hold AI stocks. He said:

This will provide them with greater liquidity to further invest in capital expenditures, and Asian suppliers will benefit from this.