Investors are broadening their search for beneficiaries of the next phase of artificial intelligence spending in Asia, targeting suppliers and infrastructure companies beyond the headline semiconductor firms, market participants said.
That rotation is being prompted in part by preparations underway at several large AI-related companies. SpaceX, OpenAI and Anthropic are planning significant capital raises that, together, could total tens of billions of dollars. Those potential financings would add to more than $750 billion already committed by major technology firms for AI-related capital expenditure, and are expected to sustain demand for data centers, computing infrastructure and related products.
While leading chipmakers such as Taiwan Semiconductor Manufacturing, Samsung Electronics and SK Hynix have been among the principal beneficiaries of the AI-driven demand for chips and data-center equipment, some investors are now looking further down the technology supply chain. The shift is partly a reaction to concerns that valuations for the top semiconductor names have become elevated following sizeable gains tied to AI demand.
Investors are increasingly scouting companies that make electronic components, advanced packaging materials, cooling systems, power equipment and server-related products. Samsung Electro-Mechanics and Japan's Ibiden were singled out as examples of suppliers that have already drawn heightened investor interest because of their links to AI infrastructure.
Demand linked to AI is expanding into additional areas beyond semiconductor fabrication, the investors said, including server assembly, optical connectivity, testing and power management. Several market participants highlighted Taiwan's Hon Hai Precision Industry, Quanta Computer and MediaTek as companies positioned to capture continued AI-related spending.
Another segment attracting investor attention is energy infrastructure. The rapid expansion of data centers has intensified focus on electricity generation and transmission, and prompted interest in firms involved in power equipment, nuclear energy and renewable energy projects. In South Korea, HD Hyundai Energy Solutions and Daewoo Engineering & Construction have been among the stronger-performing stocks this year as investors seek exposure to rising energy demand associated with AI development.
Some market participants are also targeting companies working in robotics and autonomous systems - sometimes referred to as "physical AI" - which have gained traction through partnerships with companies such as Nvidia.
Many investors expect AI infrastructure spending to continue for years, supporting demand across a broader set of companies than the semiconductor leaders that dominated the earliest stage of the rally. That extended spending profile is driving investor interest across electronic components, system assembly, connectivity, testing, power management and energy infrastructure sectors that support data-center and compute expansion.
Impacted sectors: Semiconductors, electronic components and advanced packaging; server and data-center hardware; power and energy infrastructure; robotics and autonomous systems.