SpaceX, OpenAI windfall fuels bets on next-wave Asian AI winners

Investors are increasingly betting on Asian companies that supply hardware critical to AI expansion, following SpaceX, OpenAI, and Anthropic’s upcoming equity offerings totaling $70 billion. This funding could add to the over $750 billion already committed by hyperscalers like Meta and Amazon, fueling demand for server parts, cooling components, and specialized materials. Analysts warn that Asian chipmakers—such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and SK Hynix—may have reached peak valuations, prompting a shift toward smaller suppliers like South Korea’s Samsung Electro-Mechanics and Japan’s Ibiden. Even niche players like Toto Ltd., a Japanese toilet manufacturer supplying ceramic materials for chipmaking, are seeing surging stock prices. The AI-driven capex boom is expected to last multiple years, with supply chain bottlenecks emerging beyond semiconductors. Fund managers like Jupiter Asset Management’s Sam Konrad are focusing on server assemblers like Hon Hai Precision and Quanta Computer, as well as chip designer MediaTek, which trade at lower valuations. BNP Paribas Asset Management’s Song Zhe suggests the next rally will favor advanced packaging, cooling, and optical connectivity firms in Taiwan and China, where earnings growth still justifies valuations. Meanwhile, some investors are exploring AI applications in robotics and self-driving vehicles, broadening exposure beyond traditional AI infrastructure plays. The shift reflects concerns over overvaluation in pure-play chip stocks and a search for companies directly benefiting from AI infrastructure spending without the same concentration risks.