00:00If you talk about valuations and maybe some pockets of Japan are starting to look a little bit
00:03expensive, maybe we can apply the same thinking to South Korea at the moment. The KOSPI's seen
00:09just a phenomenal run-up, particularly some of those tech names. How are they priced at the
00:14moment, in your view, and how much more upside is there realistically?
00:19Yeah, of course, also very expensive, but also part of the global AI, semiconductor,
00:24capex build-out trade, which has brought all of those names to extremely high valuations
00:32relative to their history, but driven by demand that almost can't meet enough demand for many
00:40of their products. We're talking about the semiconductor names regionally, TSMC as well.
00:47So we think it can persist. I mean, the big question is, at increased valuations or elevated
00:54valuations, the risk of a negative earnings surprise for the share price is heightened.
01:01But at the moment, we don't see that as a, you know, that's not our base case. So we think,
01:06you know, elevated valuations can remain as long as earnings support that.
01:13Yul, in terms of negative earnings surprises, we saw one out of Intel today. Where do you place
01:18the risk of seeing something similar to that moment for some of Asia's tech giants?
01:25Yeah, I mean, I think Intel is obviously a special situation, distressed situation,
01:31and lagging technologically versus its big peers out here in Asia. So, you know, we wouldn't think
01:40there's any, you know, read through from Intel specific issues for the likes of TSMC or Samsung.
01:48All right. So when you're looking at the tech investing landscape at the moment,
01:52what do you prefer? Do you prefer US or you're more weighted towards Asia at the moment?
01:56So we prefer US in terms of AI CapEx buildup, but we also like that story in China. So obviously,
02:06China is building a parallel AI landscape. And they've got, you know, they've got their own
02:14large language models, which are almost as strong as some of the likes of Anthropic, etc.,
02:19but much, much cheaper. And on the back of that, they're building out a whole domestic ecosystem.
02:26You know, we've seen a lot of listings of some of the semiconductor names, domestic semiconductor
02:30names in China. So we like the AI CapEx theme, both globally and in China, and they're, you know,
02:40sort of running parallel.
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