Templeton Emerging Markets says big tech AI spending boosts Asian chipmakers
SMH•Templeton Emerging Markets Investment Trust says US cloud giants’ capital spending is expected to exceed $870 billion in 2026 and reach $1.3 trillion in 2027, supporting Asian chipmakers whose output is sold out through 2029.
1. AI spending supports chipmakers
Templeton Emerging Markets Investment Trust says sustained AI spending by US cloud giants is supporting Asian chipmakers despite third-quarter earnings misses. The cloud giants expect capital spending to exceed $870 billion in 2026 and reach $1.3 trillion in 2027; Asian chipmakers report output sold out through 2029, with demand exceeding supply enabling price increases.
2. Risks and profit outlook
Analysts expect emerging-market third-quarter profits to rise 70% year over year, led by technology-heavy North Asian markets. Higher US interest rates could increase AI investment financing costs, while a stronger dollar may add to emerging-market volatility.
