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[ARTICLE · art-69702] src=businesstimes.com.sg ↗ pub= topic=artificial-intelligence verified=true sentiment=· neutral

Asia’s AI rally is narrowing. But the opportunity is also broadening

The first phase of Asia's AI rally, focused on semiconductor leaders and hardware suppliers in Taiwan and South Korea, is narrowing, but the opportunity is broadening as investors seek companies with better entry points and more specific earnings drivers. Goldman Sachs Global Institute estimates annual AI capital expenditure will reach US$765 billion in 2026 and US$1.6 trillion by 2031.

read1 min views1 publishedJul 23, 2026
Asia’s AI rally is narrowing. But the opportunity is also broadening
Image: Businesstimes (auto-discovered)

Investors may find companies that offer better entry points, more specific earnings drivers and less crowded positioning

ARTIFICIAL intelligence has changed the way investors look at Asian equities.

The first phase was easy to understand: buy the visible beneficiaries. These are the semiconductor leaders, memory makers, foundries, hardware suppliers and companies closest to global AI infrastructure spending.

That trade was not wrong. Taiwan and South Korea have become critical toll booths of the digital economy. The capital expenditure cycle is real: Goldman Sachs Global Institute estimates annual AI capital expenditure at US$765 billion in 2026, rising to US$1.6 trillion by 2031.

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