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BNP Paribas Asset Management: AI Sector's Potential Huge Profits Distinct from Dotcom Bubble
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Alaa Bushehri, Head of Emerging Markets Fixed Income and EM Corporates at BNP Paribas Asset Management, believed that emerging market economies will continue to grow supported by private consumption, with growth rates faster than developed markets. Currently, real interest rates in emerging markets are still lower than in the US. Bushehri believed that central banks still have room to raise interest rates in emerging markets. When asked about the AI sector, Chen Zhikai, Head of Asia and Global Emerging Market Equities at BNP Paribas Asset Management, believed that attention should not be limited to chip companies but also to industries such as energy and metals. Currently, the market is concerned about an AI bubble. Chen said that, unlike the dotcom bubble of the early 21st century, the AI sector is profitable and has huge potential profits. Companies prefer to over-invest rather than miss opportunities due to lack of investment. Asia is a beneficiary of AI investment, with most of the global AI capital expenditure flowing to Asia since the beginning of the year. He believed that bubbles should not be judged by the sector's PE ratio but rather by paying attention to various catalysts. AASTOCKS Financial News Website: www.aastocks.com |
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