Where investors may find the next ‘big wave’ for AI trade

The global landscape for artificial intelligence (AI) is expanding, with opportunities for significant gains in emerging markets. Tim Urbanowicz, chief investment strategist at Innovator from Goldman Sachs Asset Management, believes that investors should look beyond their usual investment strategies and consider the potential in countries like Taiwan and South Korea.

According to Urbanowicz, these countries are key players in the AI industry and are part of the iShares MSCI Emerging Markets ETF, which has seen a 26% increase year-to-date. He highlights the iShares MSCI Taiwan ETF, which has grown by almost 67%, and the iShares MSCI South Korea ETF, which has seen a 109% increase. Both of these ETFs hold several AI memory-related chip companies, making them attractive options for investors looking to capitalize on the AI trend.

For those looking to gain exposure to AI-driven gains in emerging markets, Urbanowicz recommends the actively managed Goldman Sachs ActiveBeta Emerging Markets Equity ETF. This ETF provides a way for investors to tap into the potential growth opportunities in AI in these markets.

While Urbanowicz is bullish on the opportunities in emerging markets, he also believes that the United States remains well-positioned for success in the AI industry. By diversifying their portfolios to include both domestic and international AI investments, investors can take advantage of the growth potential in this rapidly expanding sector.

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