Models

Global markets continue to be driven by two dominant themes: the ongoing AI-led capital expenditure supercycle and rising macro uncertainty surrounding central bank policy and geopolitics. Across the technology sector, institutional research remains highly constructive on semiconductors, AI infrastructure, and robotics. Demand for AI-related memory and server components continues to exceed expectations, with NAND pricing, AI server demand, and semiconductor exports remaining exceptionally strong. Chinese technology supply chains are also gaining global market share, particularly in RF semiconductors, humanoid robotics, and AI hardware. At the same time, Asian economies are viewed as relatively resilient due to strong manufacturing activity, supply chain diversification, and continued investment in AI infrastructure, data centers, and industrial upgrading. 

However, market sentiment is increasingly approaching extreme bullish territory. Global equity funds have seen significant inflows, while capital continues rotating out of defensive assets such as cash and gold into equities, crypto, and AI-related growth sectors. Several institutions highlighted that investor positioning has become crowded, particularly in semiconductor and AI trades, increasing the risk of short-term volatility or profit-taking. Concerns also remain over persistent inflation, a potentially more hawkish Federal Reserve under new leadership, and geopolitical tail risks linked to energy markets and Iran-related tensions. Despite these risks, the broader medium-term outlook remains constructive, with strategists generally favoring balanced exposure toward AI beneficiaries, Asian capital expenditure themes, and selective high-quality growth sectors, while gradually increasing diversification into defensive industries such as healthcare and utilities.