Summary
Highlights
The rally of global markets from the lows of March has been mainly an IT-driven story. This has been visible in US and Asian markets.
We are constructive on sectors such as Asian technology where earnings growth is strong.
Greater diversification within the tech sector can improve portfolio resilience and reduce exposure to unexpected shifts in the AI landscape.
In this edition
The global artificial intelligence (AI) rally this year has enabled the markets to look through the geopolitical conflict in the Middle East. The AI rally is clearly visible in the outperformance of the US semiconductor sector, but the US is not the only space offering AI-related opportunities. Led by tech companies, Asian markets have also rallied strongly since the start of 2026.
This strong performance of Asian tech highlights the breadth of opportunities across the AI value chain globally. While US companies maintain leadership in semiconductors and cloud computing, Chinese firms benefit from economies of scale, government support and access to critical minerals. South Korea offers expertise in memory chips, while Europe is home to businesses in AI-related physical infrastructure and enabling technologies such as data centres. Over time, the opportunity should spread out across regions, and more industries — making diversification increasingly important. The key is to identify companies offering sustainable earnings growth that are available at attractive prices.
Key dates
EZ Manufacturing PMI, ECB Inflation Expectations, US ISM, China Manufacturing PMI |
EZ Services PMI and PPI, China Services PMI |
EZ GDP Q1, US NonFarm Payrolls, India GDP |
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