JPMorgan Chase Predicts Asian Tech Stocks to Soar by 20% by Year’s End
In a recent report by Bloomberg, JPMorgan Chase has forecasted that Asian technology stocks could experience significant gains of between 15% and 20% before the end of 2025, primarily driven by the rise of artificial intelligence (AI).
According to JPMorgan Chase analysts, the continued growth in datacenter capital expenditures in 2025, coupled with increasing confidence in 2026 growth, will propel the AI sector forward. They have advised against any significant rotation away from AI stocks in the next three months, emphasizing the strength of the sector in the current market.
One key indicator of the growing demand for AI in the region is the Bloomberg Asia Pacific Semiconductors Index, which has already seen a rise of over 12% this year. This index, which tracks semiconductor companies in the Asia Pacific region, has outperformed Bloomberg’s MSCI AC Asia Pacific Index, showcasing the strength of the semiconductor industry in the region.
JPMorgan analysts have specifically highlighted the potential for growth in shares of major chipmakers such as Taiwan Semiconductor Manufacturing Co., SK Hynix Inc., Advantest Corp, and Delta Electronics Inc. They anticipate that these companies will continue to see an increase in share prices over the next 12 months, with upward revisions to company earnings.
On the other hand, JPMorgan analysts are taking a more bearish stance on non-AI stocks, particularly manufacturers of personal computers, smartphones, and consumer devices. They predict that these companies may face further downward earnings revisions due to the diminishing impact of China’s consumption subsidies.
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With the growing influence of AI and the strength of the semiconductor industry in the Asia Pacific region, JPMorgan Chase’s prediction of a 20% surge in Asian tech stocks by the end of the year is certainly one to watch closely.
[Image Credit: Midjourney]