Can emerging markets still diversify a portfolio when AI chips run the show?
MSCI’s research head, Ashley Lester, said emerging markets no longer offer the diversification investors once looked for, now that extremely large AI-related companies, particularly in AI hardware, dominate them.
“They’re right in the centre of the AI boom,” he said.
The scale of the move was stark.
Samsung Electronics and SK Hynix had led the KOSPI’s earlier surge, while Taiwan’s TSMC, the largest company in the EM universe, fell almost 14 percent as the selloff spread, Reuters reported.
Volatility on MSCI’s US$1.8tn EM benchmark, which spans more than 1,175 companies across 24 countries, climbed past its peak during the COVID-19 pandemic.
