Asia’s technology stocks have started 2026 strongly, with investors wagering that their momentum and outperformance relative to US peers will continue throughout the year. Strategists at Goldman Sachs are overweight on the sector and anticipate further gains, driven in part by surging artificial intelligence-related demand and reasonable valuations. Citi has reported that global long-term investors are accumulating Asian tech stocks, given their vital role in the semiconductor supply chain and potential for earnings upside.
A key Asia tech index has jumped approximately 6 per cent so far this year, surpassing the Nasdaq 100’s 2 per cent gain, as investors shift towards the region at the heart of the global semiconductor supply chain. This shift indicates growing doubt that US tech can sustain its AI-driven rally after years of significant gains. Strong fundamentals are reinforcing this move. Samsung Electronics, a multinational electronics manufacturer, last week reported a preliminary operating profit that more than tripled to a record. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest dedicated independent semiconductor foundry, also reported revenue exceeding estimates. Stellar sharemarket debuts of Chinese AI firms are contributing to the positive sentiment.
According to Dilin Wu, a research strategist at Pepperstone in Australia, “This really comes down to a shift in where investors see the best risk-reward right now. US tech is like a mature gold mine – already rich in value. Asian tech, on the other hand, is like an under-explored mine – still undervalued but fundamentally strong, ready to reward those who notice it.”
The MSCI Asia Pacific Information Technology Index is trading at a forward price-to-earnings multiple of 16.3 times, compared with about 25 times for both the Nasdaq 100 Index and the Philadelphia Stock Exchange Semiconductor Index. This is despite the Asian gauge outperforming the Nasdaq by 33 percentage points and the Philadelphia measure by approximately 2 percentage points since the end of 2024.
