Asian tech shares present attractive valuations despite the global frenzy around AI stocks. The Jupiter Asian Income strategy has outperformed 97% of its peers over the last five years, with companies like TSMC and MediaTek Inc. offering clear value propositions. The Bloomberg Asia Pacific Semiconductors Index is expected to see dividends rise nearly 30% over the next 12 months, indicating Asia's strategic positioning in the global tech ecosystem.
Key takeaways:
- Jupiter’s Asia Fund has increased its tech holdings to a record 32%, with a focus on Asian AI companies that offer strong dividend yields and significant global tech responsibilities.
- Asian tech firms, led by TSMC and Samsung, are attractive to investors due to their net cash balance sheets and commitment to increasing dividends as earnings grow.
- The Jupiter Asian Income strategy has outperformed 97% of its peers over the last five years, with TSMC trading at about 19 times estimated earnings and MediaTek Inc. offering a dividend yield of 5.2% for the 2024 fiscal year.
- Asia's dividend growth potential is expected to rise nearly 30% over the next 12 months, outpacing its global counterparts and demonstrating the region's strategic positioning in the global tech ecosystem.