Veteran emerging markets investor Mark Mobius has highlighted US tech companies with a focus on emerging economies as the best investment opportunities for the coming year.
According to Mobius, firms leveraging technology to boost productivity, particularly in high-growth markets like China, India, and Southeast Asia, are well-positioned for sustained success.
“The US market will continue to do well. As you know, tech has already done well. So, what I would do is focus on companies and industries that are taking advantage of technology to improve productivity,” the chairman of the Mobius Emerging Opportunities Fund said in an interview with CNBC last week.
“I focus on companies that are global in scope, producing and selling in these countries because that’s where the growth will be,” he added.
Mobius also stressed the importance of investing in firms benefiting from advancements in artificial intelligence.
He coined the term “accelerated information” to describe the transformative power of AI-driven technology, emphasizing its ability to process and analyze data more efficiently than ever before.
Semiconductor boom fuels emerging economies
Mobius’ optimism aligns with an ongoing semiconductor boom in several emerging markets.
Taiwan remains a global leader, producing the majority of the world’s advanced chips.
Similarly, ASEAN countries like Malaysia are becoming increasingly integral to the global semiconductor supply chain.
Malaysia, for instance, now accounts for 7% of global semiconductor exports.
The country’s focus on chip production has bolstered its economy, attracting foreign investment and enhancing its role in the global tech ecosystem.
Big Tech valuations raise questions but spark confidence
Mobius acknowledged concerns about the high valuations of the “Magnificent Seven” — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
These companies have seen their stock prices surge, with Nvidia’s shares rising by over 170% in 2024 alone.
While some analysts worry that this growth might signal the onset of a tech bubble, Mobius remains unfazed.
“You must remember that you can’t just look at the price-to-earnings ratio, which is the normal measure that people use to evaluate whether an industry or a stock is too expensive, because the growth rate of these companies is so great,” he said.
Nvidia’s success, driven by the launch of its new Blackwell AI chip, exemplifies how Big Tech continues to lead in innovation and market performance.
New opportunities on the horizon
Looking ahead, Mobius is optimistic not only about the established tech giants but also about emerging players in the sector.
“There are always new companies entering the picture,” he said, pointing to the dynamic nature of technology and its impact on global markets.
For investors, the fusion of US tech expertise with emerging market growth presents a compelling opportunity for 2025 and beyond.
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