Timothy Moe, head of Asia-Pacific equity strategy at Goldman Sachs, says
AI-related stocks remain attractive despite rising government bond yields and
that the firm is in the "longer-for-longer" camp on rates. He cites ultra-scale
cloud providers' planned capex of about $800bn this year, rising to roughly
$1.2trn by 2027, as a key demand signal for the Asian AI hardware supply chain.
Asian equities trade at about 10x PE, near the low end of their historical
range, which Moe says adds valuation support while corporate earnings growth
should help buffer a high-rate environment. He expects market volatility to
persist into the U.S. midterms, with high energy prices and geopolitical risks
adding downside pressure, but sees a potential year-end rally driven by earnings
and valuation recovery once that phase passes.
