Dario Amodei, Sam Altman and Elon Musk, the three musketeers at the centre of the AI race, are suddenly talking about hitting the brakes. Jefferies’ Head of Global Equity Strategy Chris Wood believes that if the AI trade loses momentum, global investors may once again turn to India, whose structural growth story has remained intact even as technology giants dominate emerging market allocations.
“It is reasonably clear that for India to become a prime point of focus again for emerging market equity investors, the AI story has to blow up,” Wood wrote in his latest GREED & fear newsletter. The three AI-linked stocks — TSMC, Samsung Electronics and SK Hynix — account for 29% of the MSCI Emerging Markets Index, compared with India’s 11%. But with Indian bank credit growing 19.1%, corporate lending accelerating and earnings growth expected to improve, Wood sees the country’s domestic resilience becoming harder for investors to ignore.
