A research report depicting a &#34;dystopian&#34; future of artificial intelligence has triggered a sell-off in global software stocks, but unexpectedly became a catalyst for Asian stock markets—investors are turning their attention to chip manufacturers, data centers, and AI foundational model companies, where Asia has a particularly strong positioning advantage.
According to a previous article from Wall Street Insight, this report published by Citrini Research and co-authored by Alap Shah, Chief Investment Officer of Lotus Technology Management, has sparked a new wave of concerns in the market about the erosion of business models in the software industry. Shah stated in an interview with Bloomberg Television that semiconductor, data center, and foundational model laboratory companies are the core beneficiaries of AI trades, specifically naming Taiwan Semiconductor, Samsung Electronics, and SK Hynix as the most representative chip manufacturers, and pointed out that China's MiniMax and Zhipu have both seen their stock prices more than double this month.
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This round of Asian gains driven by technology hardware has propelled the MSCI Asia-Pacific Index to achieve its best relative performance against the S&amp;P 500 Index at the start of this year. Meanwhile, data compiled by Bloomberg shows that the weekly correlation coefficient between the MSCI Asia-Pacific Information Technology Index and the Nasdaq 100 Index has dropped to 0.45, the lowest level since October 2017, indicating a growing divergence in the performance of Asian technology stocks.
This divergence reflects a structural rotation of funds—investors are shifting from AI pioneers, which are under pressure from high spending, to hardware manufacturers with stronger pricing power, where Asia has a natural advantage in this chain.
<h2>Semiconductors: The Biggest Winners in AI Investment Allocation</h2>
One of the core logics of the Citrini report is that software business models are facing erosion, accelerated by the rapid iteration of generative AI tools like Claude from Anthropic PBC. However, for Asian semiconductor companies, this precisely means a continuously expanding demand for computing power and capital expenditure.
Taiwan Semiconductor, Samsung Electronics, and SK Hynix are the core of the Asian chip sector. Taiwan Semiconductor accounts for as much as 45% of the Taiwan Weighted Index, about three times its weight a decade ago; Samsung and SK Hynix together account for nearly 40% of the weight of the Korea Composite Stock Price Index (Kospi), which has become one of the best-performing major indices globally this year. Reports from South Korea indicate that semiconductor exports have increased by 134% year-on-year since February, and the Bank of Korea predicts that this year's economic growth will be &#34;significantly higher&#34; than last year.
Vey-Sern Ling, Managing Director of Union Bancaire Privee in Singapore, stated:
<blockquote>
&#34;Taiwan Semiconductor, Samsung, and SK Hynix are all direct beneficiaries of the continued growth in AI spending. The AI panic trade truly began in the software industry, and most well-known software companies globally are listed in the United States.&#34;
&#34;
</blockquote>
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<h2>Asia's Technology Stocks Correlation Falls to Seven-Year Low</h2>
This divergence trend has left a clear mark in the data. According to Bloomberg data, the weekly correlation coefficient between the MSCI Asia Pacific Information Technology Index and the Nasdaq 100 Index has dropped to 0.45, the lowest level since October 2017.
Vey-Sern Ling also pointed out that other major components of the MSCI Asia Pacific Index—such as banks, materials, and industrial companies—are relatively less affected by the direct impact of AI disruption, which objectively further reduces the overall sensitivity of the Asian market to AI panic sentiment.
Christopher Forbes, head of CMC Markets' Asian business, stated: &#34;Decoupling has begun. Asian corporate earnings growth is expected to maintain a level of 13% to 14% before 2027, and any argument emphasizing reconnection without acknowledging the differences in index composition is fighting a losing battle.&#34;
The AI beneficiary landscape in the Asian market extends beyond traditional semiconductors. In China, emerging AI lab companies like MiniMax Group and Zhipu have seen their stock prices more than double this month, providing investors with scarce pure-play exposure to AI foundational models. Alap Shah also noted that Japan plays a key role in the semiconductor equipment value chain, making it an indispensable part of AI infrastructure development.
<h2>Indian IT Services Industry on the Weak Side</h2>
Not all Asian tech companies are benefiting from this round of market activity. Indian IT service firms represented by Tata Consultancy Services and Infosys have seen their related tracking index decline by over 20% since Anthropic released Claude, facing similar business model pressures as U.S. software companies.
Nevertheless, several market participants believe that the logic of overall Asian tech stocks outperforming remains sustainable, supported by differentiated positioning within the AI ecosystem, relatively low valuations, and stronger earnings growth expectations.
Chetan Seth, a strategist for Asia Pacific equities at Nomura Securities, stated:
<blockquote>
&#34;As long as the theme of AI capital expenditure continues, Asian stock markets will be more resilient. Asia is the manufacturing center for the key hardware infrastructure required for AI investment, with core Asian markets like South Korea highly concentrated in companies benefiting from this trend.&#34;
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The Citrini report triggered a sell-off in U.S. software stocks but unexpectedly boosted Asian tech stocks, with the correlation of Asian-American tech stocks dropping to a seven-year low. The report's authors emphasized that semiconductor, data center, and large model companies are the core beneficiaries of this round of AI trading, noting that the stock prices of China's MiniMax and Zhipu have doubled this month, and specifically mentioning Taiwan Semiconductor, Samsung Electronics, and SK Hynix

- A research report depicting a "dystopian" future for artificial intelligence has sparked a sell-off in global software stocks while boosting Asian markets, with investors shifting focus to chip manufacturers and data centers.  
- The report by Citrini Research highlighted concerns over the erosion of software business models, citing TSMC, Samsung, and SK Hynix as key beneficiaries in the semiconductor sector, which has seen significant gains.  
- As a result, the MSCI Asia Pacific index has outperformed the S&P 500 this year, reflecting a structural shift in investment towards hardware manufacturers amid rising demand for computational power.

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The "AI Apocalypse" report suggests that Asian tech stocks are likely to emerge as winners, specifically naming MiniMax and IM Motors