The next big advance in artificial intelligence may come from thousands of miles away.
Tim Urbanowitz, chief investment strategist for Innovators at Goldman Sachs Asset Management, urges investors to look beyond their own backyards to emerging markets.
”[It’s] That’s where you can make a lot of money in AI trading,” he said on CNBC’s “ETF Edge” this week, calling it “the next big wave.”
Urbanovic is particularly bullish on Taiwan and South Korea when it comes to building AI. He notes that they make up a large portion of the broader iShares MSCI Emerging Markets ETF, which was up 26% as of Thursday’s close.
“These are major players in the AI trade and AI space, but they haven’t really appreciated as much as the U.S.,” he said. “We believe there is still a long way to go before this AI trading can deliver huge profits.”
As of Thursday’s U.S. close, the iShares MSCI Taiwan ETF market is up about 67% since the beginning of the year, while the iShares MSCI Korea ETF market is up 109%. Both Taiwan and South Korea-focused ETFs hold several AI memory-related chip names.
In special comments to CNBC, Urbanowitz highlighted the actively managed Goldman Sachs Active Beta Emerging Markets ETF as a way for investors to gain exposure to potential AI-driven gains in emerging markets.
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Let’s experience AI overseas
Still, Urbanovic is not abandoning domestic trade when it comes to AI.
“I think the United States is still in a position to succeed,” he said.
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