AI Euphoria Lifts Asia Tech as ‘Late-Cycle’ Volatility Looms

Group 1 - Asian technology stocks are experiencing gains, particularly driven by chipmakers and AI-related companies, but investors are becoming cautious about potential volatility in the sector [1][2] - South Korea's Kospi Index reached a record high, largely due to Samsung Electronics achieving an all-time high, while Chinese tech shares listed in Hong Kong saw a surge of up to 4.3% [2] - The MSCI Asia Pacific Information Technology index had a significant increase of 47% last year, leading traders to closely monitor earnings for signs of a maturing boom [3] Group 2 - There is a growing potential for shifts in investment style and sector focus as physical bottlenecks in AI capital expenditure become more evident, indicating a "late cycle" boom with higher returns and volatility [4] - Nine of the top ten contributors to the MSCI Asia benchmark were technology stocks, pushing the regional tech gauge into overbought territory as it approaches record highs [5] - Valuations for Asia's tech shares are still lower compared to US counterparts, and the pipeline for Chinese AI firm listings remains strong, with Baidu Inc.'s chip unit filing for a Hong Kong offering [6]