PIMCO fund manager Emmanuel Sharef said the next winners from the AI boom are unlikely to come from crowded U.S. mega-cap technology stocks and are instead in Asia, including equipment suppliers, Chinese financial stocks, and healthcare shares. According to Sina Finance, he said PIMCO remains overweight Asia because earnings growth is strong and the region is investing in companies further down the AI supply chain.
Sharef manages PIMCO's flagship $19 billion 60/40 Strategy Balanced Income and Growth Fund, which has outperformed 97% of peers over the past three years. He said the fund is underweight most hyperscale data center operators and most of the Magnificent Seven because valuations are too high.
Sharef also said AI-related capital spending is enormous, which means demand should rise sharply for chip semiconductor components, cooling equipment, cable interconnects, optical equipment, power supplies, construction equipment, metals, and other materials needed to build data centers. According to Sina Finance, PIMCO has also been increasing its investment in biotechnology and life sciences steadily over the past 18 months.
Alex
