Nvidia, a leading manufacturer of AI hardware, recently reached a record market cap that helped fuel the S&P 500’s eighth consecutive record day and 31st of the year. The success of Nvidia, like other tech giants such as Apple, Microsoft, and Amazon, is attributed in part to its investments in Southeast Asian countries like Malaysia, Vietnam, and Singapore. These countries are becoming increasingly popular choices for tech investments due to their perceived immunity to US-China tensions and ease of political navigation compared to India.
Analysts view Nvidia as a strong investment due to its position as a leader in the AI hardware market. Wall Street remains optimistic about Nvidia’s future, with one analyst predicting a $10 trillion valuation for the company by 2030. Despite concerns of a potential dot-com bubble in the AI market, some analysts believe these fears are unfounded. Investment companies like UBS and BlackRock do not see a bubble forming, pointing to the profitability of mega-cap tech companies as a key differentiator from the unprofitable firms seen during the dot-com bubble.
The differences in the speed of change, market size, and progression to the most valuable company stage further distinguish the AI market from the earlier dot-com boom. Tech companies are expected to invest $60 billion in Southeast Asia for data centers in the coming years, attracted by the deep talent pool and supportive environment for cross-border investments. As more investors enter this region, Southeast Asia is set to become an even more popular choice for tech investments in the future.
