AI investment trends are shifting! Funds are withdrawing from US stock giants and rushing into the "hard power" supply chains of Taiwan, South Korea, and Japan

The global AI investment market is undergoing a silent capital revolution. Over the past two years, hot money has concentrated on the seven major technology giants in the U.S. stock market, but recently it has clearly begun to "shift." Many active funds and hedge funds are turning their attention to Asia, focusing on the AI hardware supply chains in Taiwan, South Korea, and Japan, launching a new round of investments. Market analysis indicates that this is not only a geographical migration of capital but also a key turning point in investment logic from "betting on a single star" to "mastering the advantages of the entire supply chain." Capital Windfall: The Journey of Computing Power from the U.S. West to Asia Reports from foreign media and market trading data show that in recent months, international capital, including foreign institutions and sovereign funds, is accelerating the adjustment of their AI-themed investment positions. On one hand, they are taking profits and managing risks through derivative financial products on AI benchmark stocks like NVIDIA and AMD; on the other hand, they are transferring a large amount of spot capital into Taiwan's foundries, packaging and testing, server assembly, South Korea's memory giants, and Japan's equipment and materials suppliers. "The AI story has shifted from 'whose algorithm is the strongest' to 'who can efficiently and cost-effectively realize computing power,'" said a fund manager based in Singapore. He further analyzed that Taiwan occupies a key position in the global semiconductor manufacturing and server supply chain, South Korea has a leading advantage in HBM (High Bandwidth Memory), and Japan is irreplaceable in equipment and advanced materials. "The valuations of these companies are still discounted compared to the leading AI stocks in the U.S., but their profit growth and order visibility are very clear, naturally attracting capital inflows." Not Just NVIDIA! The Biggest Gainers in AI Stocks This Year Are "Them" It is noteworthy that this wave of capital migration also echoes a striking phenomenon in the U.S. stock market this year: the biggest gainers among technology stocks are not the well-known NVIDIA or Microsoft, but the two hard drive manufacturers, Western Digital and Seagate Technology. As of recent data, Western Digital has surged 255% this year, while Seagate Technology has skyrocketed 206%, taking the top two spots in the S&P 500 index for technology stock gains. Other impressive performers include Micron, Lam Research, and Amphenol, which are also "AI infrastructure stocks." The commonality among these companies is that they are all indispensable parts of AI computing power infrastructure—whether it is data storage, semiconductor equipment, or high-speed connectivity components. "This indicates that market awareness has deepened," pointed out a technology industry analyst. "AI not only requires GPUs for training models but also needs the entire backend for storage, transmission, cooling, and power management. These 'arms dealers' in the AI arms race have order and revenue visibility that is more direct and manifests earlier." Opportunities and Risks for Taiwanese Manufacturers: Long-term Layout Tests Vision For Taiwanese investors, this wave of capital moving eastward presents both opportunities and potential volatility risks. The semiconductor foundries, servers, cooling modules, optical communications, and testing interface sectors in the Taiwan stock market, which directly connect to global AI infrastructure demands, have attracted a large amount of international capital. However, analysts also remind that the Asian supply chain faces multiple variables such as geopolitical issues, export controls, economic cycles, and exchange rate fluctuations "Once the United States tightens its controls on high-end chips and equipment again, or global AI capital expenditure slows down, the stock price fluctuations of these currently favored stocks may be more severe than those of leading U.S. stocks." In addition, some markets have already seen an increase in financing balances and dramatic fluctuations in short-term thematic stocks this year, indicating that there is both long-term positioning and short-term speculative capital in the market, which can easily increase the pressure for technical corrections. Investment Insight: From "Buying Concepts" to a Pragmatic Era of "Buying Supply Chains" Overall, the main theme of AI investment has not changed, but the stage is expanding from U.S. software and chip design companies to multinational hardware manufacturing and infrastructure supply chains. For investors looking to participate in the long-term trend of AI, rather than chasing the highly valued U.S. stock giants, it is better to gain a deeper understanding of the key links in the entire computing power supply chain, especially those Asian companies with technological barriers, high order visibility, and relatively reasonable valuations. The market is always changing, but the pursuit of efficiency and value remains constant. This wave of AI capital migration may be telling us that the AI dividends of the next decade will belong to those true "behind-the-scenes contributors" who are actually "building up computing power."