Investors are increasingly looking to Asia’s technology supply chain as a key beneficiary in an expected wave of new initial public offerings by SpaceX, OpenAI and Anthropic, betting that new capital raised in the US will lead to further growth in artificial intelligence spending.
The expected funding by the three companies could support additional investments in computing infrastructure, data centers and advanced hardware, creating opportunities for Asian companies producing server components, specialty materials, cooling systems, power equipment and semiconductor-related technology.
Asian hardware companies are already the biggest winners of the global data center boom. A surge in AI infrastructure spending has pushed the valuations of major chipmakers such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co., Ltd. and SK Hynix to record levels. But with major semiconductor stocks soaring, some investors are now looking for the next group of AI beneficiaries at more attractive valuations.
Ken Wong, Asian equity portfolio specialist at Eastspring Investments Hong Kong, said AI-related IPOs could further support capital spending as Asian semiconductor stocks look tight. He noted that investors are increasingly focusing on electronic component manufacturers, not just large semiconductor manufacturers.
The battle for AI supremacy has already seen major technology companies such as Metaplatform and Amazon invest heavily in computing networks. The potential listings of SpaceX, OpenAI and Anthropic could add about $70 billion in AI spending on top of the more than $750 billion already committed by the biggest hyperscalers, according to market estimates cited by Bloomberg.
Investment opportunities are also expanding beyond traditional chipmakers. Companies involved in advanced packaging, substrates, test, optical connectivity, server assembly, power systems, and cooling technologies are receiving significant attention.
South Korea’s Samsung Electro-Mechanics and Japan’s IBIDEN have performed well in Asian markets this year, supported by demand for electronic components used in server and semiconductor manufacturing.
Some investors also see opportunities in Taiwanese companies such as Hon Hai Precision Industries, which builds servers, Quanta Computer and chip designer MediaTek. Some companies are focusing on “physical AI” applications such as robots and self-driving cars, which could benefit suppliers such as LG Electronics.
Power supply is also an area of interest for investors, as data center expansion increases the demand for power infrastructure. Companies involved in solar power, nuclear energy, transformers, fuel cells, cables, gas turbines, and other power equipment are expected to benefit as data center capacity continues to increase.
But some fund managers have warned that the next stage of the AI rally could involve greater risks. If demand for AI does not justify the scale of spending, companies may reduce capital spending, exposing the market to over-infrastructure and precipitous valuation declines.
Still, many investors see the expected funding from SpaceX, OpenAI, and Anthropic as a positive signal for the AI supply chain. Asian suppliers, especially those related to servers, components, power, and cooling, are expected to continue to be key beneficiaries of the next phase of AI infrastructure investment.
