JPMorgan Predicts 20% Surge in Asian Tech Stocks by 2025 End

JPMorgan Chase, the largest US bank, has predicted that one regional stock sector may surge by as much as 20% before the end of the year. According to a new report, Asian technology stocks are expected to gain between 15% and 20% during the remainder of 2025, primarily due to the advancements in artificial intelligence (AI).

JPMorgan Chase analysts have stated that AI will continue to drive this growth cycle, fueled by the increase in datacenter capital expenditures in 2025 and growing confidence in 2026. They do not advise any significant rotation away from AI stocks in the next three months. One key indicator of the substantial AI demand in the region is the Asia Pacific Semiconductors Index, which has risen over 12% this year. This index, which measures the performance of semiconductor companies in the Asia Pacific region, has outperformed the MSCI AC Asia Pacific Index, a broader gauge of Asian equities.

JPMorgan’s analysts predict that shares of the region’s leading chipmakers, including Taiwan Semiconductor Manufacturing Co., SK Hynix Inc., Advantest Corp, and Delta Electronics Inc., will continue to rise for at least the next 12 months. They also anticipate that company earnings will see upward revisions. Meanwhile, JPMorgan analysts are bearish on non-AI stocks, including manufacturers of personal computers, smartphones, and consumer devices. They predict that these companies may face further downward earnings revisions due to the diminishing impact of consumption subsidies.

This forecast by JPMorgan Chase underscores the growing importance of AI in the technology sector and its potential to fuel growth in Asian tech stocks. The strong momentum in AI is expected to create new opportunities for tech companies, particularly those involved in semiconductor manufacturing and data center operations. As AI continues to advance, it is likely to have a profound impact on various industries, further boosting the demand for AI-related technologies and services. This positive outlook for Asian tech stocks is based on the increasing adoption of AI and its transformative potential across different sectors. The forecast by JPMorgan Chase highlights the potential for significant gains in the Asian technology sector, driven by the AI revolution.