Goldman Sachs: AI stocks attractive, $800B cloud capex supports Asia hardware chain
Goldman Sachs Asia Pacific equity strategist Timothy Moe stated on September 25 that AI-related stocks remain attractive despite rising bond yields. He noted hyperscale cloud companies are expected to invest about $800 billion this year, potentially reaching $1.2 trillion by 2027, signaling demand for Asia’s AI hardware supply chain. Moe cited Asia’s low valuations (P/E ~10x) and earnings growth as buffers against high interest rates, but expects a “bumpy” market ahead of U.S. midterm elections before a year-end rally.
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Goldman Sachs Says AI Stocks Attractive, $800B Cloud Investment Supports Asia Hardware Chain
Goldman Sachs Asia Pacific equity strategy head Timothy Moe stated on September 25 that AI-related stocks remain attractive despite rising government bond yields. Moe said the firm is in the 'higher for longer' camp, noting that hyperscale cloud companies are expected to invest approximately $800 billion this year, with investment potentially reaching about $1.2 trillion by 2027. He described this as a significant signal for demand in Asia's AI hardware supply chain. Moe added that Asia's 'very low' valuation levels provide additional support for related stocks, with the overall Asian equity market trading at a price-to-earnings ratio of about 10 times, near the low end of its historical range. He said corporate earnings growth will also provide a buffer against the high-interest-rate environment. For the remainder of the year, Moe expects markets to remain 'somewhat bumpy' as the U.S. midterm elections approach, with high energy prices and geopolitical risks adding pressure. However, after this period, he believes markets could rally by year-end, driven by earnings growth and valuation repair.
Read sourceGoldman Sachs Says AI Stocks Attractive, $800 Billion Capex Supports Asia Hardware Chain
Goldman Sachs Asia Pacific equity strategist Timothy Moe stated that AI-related stocks remain attractive despite rising government bond yields. Moe noted that the firm is in the 'higher for longer' camp, pointing to hyperscale cloud companies' expected capital expenditure of approximately $800 billion this year, potentially reaching $1.2 trillion by 2027. This investment is seen as a key demand signal for Asia's AI hardware supply chain. He added that Asian stocks' 'very low' valuation of about 10 times earnings provides additional support, and corporate earnings growth should offer a buffer against high interest rates. For the remainder of the year, Moe expects a 'somewhat bumpy' market ahead of the US midterm elections, with high energy prices and geopolitical risks adding pressure. However, he forecasts a rally by year-end driven by earnings growth and valuation recovery.
Read sourceGoldman Sachs Says AI Stocks Attractive, $800 Billion Investment Supports Asian Hardware Chain
Goldman Sachs Asia Pacific equity strategist Tim Moe stated that AI-related stocks remain attractive despite rising government bond yields. Moe said the firm is in the 'higher for longer' camp, noting that hyperscale cloud companies are expected to invest approximately $800 billion this year, with investment potentially reaching $1.2 trillion by 2027. This serves as a key signal for demand in the Asian AI hardware supply chain. Moe added that 'very low' valuations in Asian markets, with an overall price-to-earnings ratio of about 10 times, provide additional support for related stocks. He also said corporate earnings growth will provide a buffer against a high-interest-rate environment. For the remainder of the year, Moe expects markets to remain 'somewhat bumpy' as the U.S. midterm elections approach, with high energy prices and geopolitical risks adding pressure. However, after this period, he believes markets could rally by year-end, driven by earnings growth and valuation recovery.
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Goldman Sachs: Asian AI Stocks Attractive Despite Rising Bond Yields
Goldman Sachs' chief Asia-Pacific equity strategist, Timothy Moe, stated that AI-related stocks in Asia remain attractive despite rising government bond yields. Moe noted that the firm is in the 'stronger for longer' camp, citing projected capital expenditures by hyperscale cloud service providers of approximately $800 billion this year, rising to $1.2 trillion by 2027, as a key demand signal for the Asian AI hardware supply chain. He added that the region's 'very low' valuations, with a price-to-earnings ratio of around 10 times, provide additional support, and that earnings growth will offer a buffer against higher interest rates. For the remainder of the year, Moe expects markets to be 'somewhat bumpy' ahead of the U.S. midterm elections, with rising energy prices and geopolitical risks adding pressure. However, he forecasts a rebound by year-end driven by earnings growth and valuations.
Goldman Sachs: Asian AI Stocks Attractive Despite Rising Bond Yields, Low Valuations Support
Goldman Sachs chief Asia Pacific equity strategist Timothy Moe stated that artificial intelligence (AI)-related stocks remain attractive in Asia despite rising government bond yields. Moe noted that the firm is in the 'stronger for longer' camp, citing expected capital expenditure by hyperscale cloud providers of approximately $800 billion this year, rising to about $1.2 trillion by 2027. This spending is seen as a key demand signal for Asia's AI hardware supply chain. Moe added that the region's 'very low' valuations, with a price-to-earnings ratio of around 10 times at the lower end of its historical range, provide additional support. He also said that earnings growth will offer a buffer against higher interest rates. For the remainder of the year, Moe expects markets to be 'somewhat bumpy' ahead of the US midterm elections, with rising energy prices and geopolitical risks adding pressure. However, he forecasts a rebound by year-end driven by earnings growth and valuations.
Read sourceGoldman Sachs: Asian AI Stocks Attractive on Low Valuations and Earnings Growth
Goldman Sachs chief Asia-Pacific equity strategist Timothy Moe stated that Asian AI-related stocks remain attractive despite rising government bond yields. Moe noted that the firm belongs to the 'stronger for longer' camp, citing projected capital expenditures of approximately $800 billion this year by hyperscale cloud providers, rising to about $1.2 trillion by 2027, which signals strong demand for Asia's AI hardware supply chain. He added that the region's 'very low' valuations, with a price-to-earnings ratio of around 10 times at the lower end of the historical range, provide additional support. Earnings growth is also expected to buffer against higher interest rates. For the remainder of the year, Moe predicted a 'bumpy' market ahead of the US midterm elections, pressured by rising energy prices and geopolitical risks, but expects a rebound by year-end driven by earnings growth and valuations.
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