Asset managers, Aberdeen Investments, remains optimistic about AI-related technology companies in Asia, citing strong demand and positive medium-term outlooks from companies in Korea and Taiwan.
The company believes that the recent market pullback has made valuations more attractive, creating opportunities to invest in high-quality businesses.
Aberdeen Investments investment director of Asian equities Kieron Poon believes the recent weakness in the Korean market and broader Asian technology sector is driven by deleveraging in Korea and softer sentiment toward global tech stocks, but does not alter the long-term positive outlook for the sector.
Aberdeen believes that the AI industry is moving beyond model training into broader adoption, real-world applications, and AI agents. This progression is expected to sustain demand for computing power, advanced chips, and memory.
Korean memory-chip manufacturers are expected to benefit from growing AI-driven demand due to their technological leadership, scale, and market positions. Improved earnings and cash flow could lead to increased shareholder returns through dividends and share buybacks.
Overall, Aberdeen views the recent market correction as a healthy adjustment that creates attractive long-term investment opportunities across Korea and the wider Asian technology supply chain, particularly in companies positioned to benefit from structural AI growth.