Artificial intelligence (AI) is expected to remain an attractive investment theme over the next 12 months as global economic growth remains resilient and corporate earnings continue to strengthen, according to MFC Asset Management.
Managing director Thanachot Rungsitthiwat said global markets are supported by five major drivers: the direction of interest rates and monetary policy, resilient corporate earnings, AI as a global trend, capital rotation into companies with visible earnings growth, and easing geopolitical tensions.
The asset manager expects the global and US economies to continue expanding, while recession risks remain relatively low. Earnings of large-cap corporations are expected to stay strong, with AI, infrastructure and energy emerging as key growth sectors.
However, investors should remain cautious about inflation volatility, uncertainty over future interest rate decisions, the ability of AI companies to monetise their technologies, the US midterm elections, global trade tensions and geopolitical conflicts.
Mr Thanachot advised investors to focus on quality companies with sustainable earnings growth while maintaining diversified portfolios.
AI INFRASTRUCTURE
MFC assessed the AI investment story as expanding beyond software and applications to the infrastructure that powers the technology. The company expects the global memory chip market to grow from roughly US$214 billion in 2025 to $1.68 trillion by 2028, driven by rising investment in AI infrastructure and data centres.
Spending on memory by cloud service providers is also projected to increase sharply, while high bandwidth memory (HBM), a critical component for AI processors, is expected to remain in short supply through 2028 as demand outpaces production capacity.
The rapid adoption of large language models and generative AI is driving significant demand for data storage and computing capacity. NAND flash memory (a non-volatile storage technology) and enterprise solid-state drives are popular as AI systems require faster access to massive datasets for training and real-time processing.
The firm expects NAND, traditionally viewed as a commodity storage component, to become a higher-value segment of the semiconductor industry as AI adoption broadens across sectors.
Chaovakorn Chotibunt, executive vice-president and head of investment strategy at MFC, said AI should be viewed as a complete investment system rather than just a technology application.
"AI investment opportunities extend from power generation, data centres, semiconductors, advanced chip packaging, and computing hardware to memory technologies and software applications," he said.
MFC recommends four funds for investors to capture opportunities across the AI value chain. The first is MGTECH, which invests in leading global technology and AI companies. MATECH focuses on Asian semiconductor manufacturers and upstream technology suppliers, while M-MEM targets memory chip leaders benefiting from demand for HBM, DRAM and NAND. MRENEW invests in energy and infrastructure supporting AI-driven power consumption.
M-MEM has a minimum investment of 500,000 baht due to its concentrated exposure to memory-related companies. The portfolio includes major players such as Samsung Electronics, SK hynix, Micron Technology, Western Digital, Kioxia Holdings, Intel and Seagate Technology.
MFC believes as AI adoption continues to expand globally, companies across the AI infrastructure value chain are well-positioned to benefit, said Mr Chaovakorn.
