Next Wave

• Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, is analyzing the current AI boom to identify the next major investment cycle. • The analysis focuses on moving beyond the initial "big wave" of hardware and infrastructure to find emerging opportunities within the AI trade. • This shift is critical for investors as the market evolves from early adoption and chip-making dominance toward software integration and practical applications.

• Investors anticipate that massive funding rounds for AI leaders like OpenAI, Anthropic, and SpaceX will trigger a new global wave of technology spending. • This capital influx is expected to benefit a broad supply chain, including manufacturers of server parts, specialized materials, cooling components, and power equipment. • The trend could catalyze a further rally for Asian hardware firms, following the success of industry giants such as TSMC, Samsung Electronics, and SK Hynix.

• Investors in Asia are shifting their focus beyond semiconductor chipmakers to identify the next wave of AI-driven growth opportunities. • In South Korea, stocks like HD Hyundai Energy Solutions and Daewoo Engineering & Construction have seen strong performance this year. • This trend reflects a strategic pivot toward companies that can meet the surging energy and infrastructure demands required to power AI development.