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Updated · Bloomberg · Jul 16Franklin Templeton Cuts AI Chip Bets, Backs $14 Billion Chinese Internet Push
2 articles · Updated · Bloomberg · Jul 16Summary
- Franklin Templeton’s main emerging equity fund has gone neutral on AI supply-chain stocks, trimming memory chipmakers after their sharp rally.
- Chetan Sehgal, who oversees more than $14 billion across emerging-market portfolios, said the move ends a long-standing overweight in those names.
- Alibaba and Tencent are now favored as the firm turns bullish on Chinese internet platforms that investors have largely shunned this year.
- The shift reflects a rotation away from AI hardware winners toward cheaper Chinese internet stocks in emerging markets.
Insights
As AI chip stocks boom, is betting on China's heavily regulated internet giants a masterstroke or a massive miscalculation? Will the 'geopolitical time tax' on AI chips pose a greater risk than China's stringent regulatory environment for tech platforms?