Emerging market stocks are back in focus as investors look beyond the US for exposure to artificial intelligence, semiconductors and digital infrastructure.
The clearest opportunity is in Asia. Taiwan and South Korea remain central to the AI supply chain, with chipmakers and memory producers benefiting from strong demand. AI spending is not only supporting US technology shares. It is also lifting the companies that supply the hardware behind it.
China is another area to watch. Its technology shares have lagged, but demand for domestic AI tools and chips is improving the investment case. That creates potential upside if earnings recover and sentiment turns.
Emerging markets still trade at a discount to developed markets, while investor positioning remains low. That means the asset class could benefit if global funds increase exposure.
A weaker US dollar and lower bond yields would usually help emerging markets by easing financial pressure and supporting local currencies. Reduced geopolitical tension would also improve risk appetite, although political and policy risks remain.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
