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BofA Survey: Taiwan Stocks Top Pick for Asian Fund Managers Amid AI Optimism
Electronic Technology · Semiconductors · economic_daily · 2026-10-16
A Bank of America survey reveals that Asian fund managers favor Taiwan, with a 50% net overweight position, as they anticipate the region will lead the next wave of AI growth.
What Happened
Market Sentiment: According to the latest Bank of America survey, Taiwan has emerged as the top choice for Asian fund managers, boasting a 50% net overweight position. This sentiment significantly outpaces Japan and South Korea, with over 30% of respondents identifying Taiwan as the primary beneficiary of the next phase of the AI boom.
AI Investment Trends: Investor appetite for AI-related assets continues to climb, with 45% of managers reporting increased allocations compared to 25% in September. Market participants largely agree that the ability of AI to generate tangible revenue will serve as the most critical driver for Asia-Pacific equity markets over the next 12 months.
Capital Flows and Risks: Conversely, China, India, and Indonesia remain the least favored markets, with net underweight positions in China deepening. While optimism remains high, some indicators suggest that exposure to technology stocks has reached a six-year peak, with nearly half of the respondents expressing concerns about a potential AI bubble by 2027.
Expert Outlook: Fundstrat’s Mark Newton has echoed this bullish outlook, advising investors to focus on market fundamentals rather than geopolitical anxieties. He specifically highlighted Taiwan as a superior emerging market for short-to-medium-term capital deployment, suggesting investors shift focus away from China and India.