Goldman Sachs' Chief Equity Strategist for Asia-Pacific, Timothy Moe, stated that despite the rise in Treasury bond yields, AI related stocks remain attractive, and the firm definitely belongs to the "long-term strong" camp.
He estimates that the investment in ultra-large-scale data centers this year is about $800 billion, and related investments will rise to about $1.2 trillion next year, which is seen as a major demand signal for Asia's AI hardware supply chain.
Moe indicates that the extremely low valuations in Asia also provide additional support. Currently, the price-earnings ratio in this region is around 10 times, which is at a relatively low level in history, and the growth in corporate earnings will also act as a buffer against rising interest rates.
He continued to point out that as the U.S. mid-term elections in November approach, the market is bound to experience some volatility, and rising energy prices and geopolitical risks will also bring pressure. However, after that, driven by earnings growth and valuations, the market is expected to rebound before the end of the year.
