Goldman

• A July report from Goldman Sachs reveals that AI infrastructure investment is expanding beyond major hyperscalers to include neoclouds, sovereign projects, and broader enterprise adoption. • The report highlights key deals involving companies such as Meta and IREN, signaling a diversified growth pattern in AI computing capacity. • This shift is significant as it demonstrates that AI integration is moving into global markets and specialized sovereign investments rather than remaining concentrated among a few tech giants.

• Asia-focused equity hedge funds are facing their largest monthly drawdown on record, according to a report from Goldman Sachs released on July 30. • The losses are primarily driven by a broad rout in AI-related stocks, which erased significant gains previously made from crowded bets in the sector. • This downturn highlights the volatility and risk associated with concentrated positions in high-growth technology and AI themes across Asian markets.

• Goldman Sachs has identified the South Korean won as the top foreign exchange bet in Asia for the next three months, driven by an AI-fueled boom in exports. • The bullish outlook for the won, Taiwan dollar, Chinese yuan, and Malaysian ringgit contrasts with a bearish stance on the Thai baht and Indonesian rupiah. • Regional pressures include falling gold prices and low interest rates in Thailand, as well as policy uncertainty in Indonesia and oil price sensitivity in the Philippines.

• Goldman Sachs reports that the artificial intelligence boom is significantly reshaping Asia's currency markets, creating a clear divide based on technology exposure. • Currencies linked to AI supply chains and semiconductor exports—specifically the South Korean won, Taiwan dollar, Singapore dollar, and Malaysian ringgit—are currently outperforming their regional peers. • In contrast, currencies more vulnerable to rising energy costs, such as the Thai baht, Philippine peso, Indonesian rupiah, and Indian rupee, have seen weaker performance.

• Goldman Sachs has increased its 12-month target for Japan's TOPIX index from 4,400 to 4,500, suggesting a potential upside of approximately 12%. • The firm's optimistic outlook is driven by expectations that a weak yen will significantly boost Japanese corporate earnings. • This move comes as the TOPIX remains only 2% below its all-time high set in June, outperforming other Asia-Pacific markets with a stable forward P/E ratio of 16x to 17x.

• Goldman Sachs stock is trading near recent highs following strong earnings momentum driven by growth in its investment banking and trading divisions. • The firm's financial performance is currently supported by increased revenue and profit, though retail investors are closely monitoring capital returns and balance sheet metrics. • The stock's valuation remains sensitive to macroeconomic variables, including GDP growth, inflation, and central bank policy rates, which impact corporate demand for advisory services.

• Goldman Sachs has launched a new private markets platform designed to expand investment offerings for its affluent client base. • The initiative responds to growing investor demand for exposure to high-growth startups and privately held companies. • To execute this strategy, the bank is consolidating existing business units to form a dedicated private company team.