Smart money piles into South Korean stocks as global AI bet looks for options to TSMC
Investors searching for ways to navigate the artificial intelligence story are turning their sights away from Taiwan and toward South Korea.
Federated Hermes, M&G Investments and Invesco Asset Management are underweight Taiwanese stocks and overweight Korean shares, saying positioning in the former has become crowded after a record-breaking rally. A push from Samsung Electronics and SK Hynix into high-bandwidth memory, cheaper valuations and outsize gains from Taiwan Semiconductor Manufacturing are making Korean shares a more appealing bet.
“We have an underweight allocation to Taiwan given more attractive opportunities in Korea,” said James Cook, head of investment specialists at Federated Hermes. The asset manager’s biggest stock…
