Investors Shift to Asian AI Underdogs as Tech Giants Cool
The AI stock boom enters its fourth year with a notable rotation away from semiconductor leaders like TSMC and SK Hynix. Market momentum now favors smaller Asian players such as MediaTek and Zhongji Innolight as the industry pivots from foundational model development to cost-efficient applications.
Recent moves by Alphabet and Amazon have accelerated the sector's realignment. SoftBank's 38% November plunge - its worst monthly performance in a quarter century - underscores the volatility as Nvidia's dominance in training chips faces growing pressure from specialized alternatives.
'When large language models become commoditized, cost leaders will prevail,' observes Quad Investment's Han Sangkyoon. This sentiment echoes across trading desks as investors rebalance portfolios toward application-specific AI solutions.
