Asian institutional investor appetite for US Big Tech stocks has ramped up as the transformational themes happening in the artificial intelligence (AI) arms race has become heavily US dominated, Wedbush analysts wrote in a note published on Friday following a two week investor trip across Asia.
They noted that these investors are rotating away from China Big Tech stocks, such as Alibaba and Tencent due to geopolitical tensions and regulatory surprises from Beijing, and towards US names such as Microsoft, Apple, Alphabet, Amazon, Netflix, and Salesforce.
“While many investors are naturally skeptical around the recent run-up we have seen in Big Tech and the significant outperformance so far in 2023, the biggest theme was around the AI arms race and who are the winners in this Game of Thrones battle,” the analysts said.
They added that the growth themes around cloud, cyber security, AI arms race, Apple, and Tesla/EVs were front and center throughout the meetings at various cities they visited.
“We believe Google has made significant progress over the past few months and will able to monetize this theme along with Nvidia, Meta, Apple, Salesforce, and a host of other tech stalwarts going after what we estimate is an $800 billion market opportunity over the next decade,” the Wedbush analysts stated.
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