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Peggy Ye

Investors in Asia are demanding clearer evidence that artificial intelligence can translate into revenue and earnings, rather than simply seeking exposure to the technology, as the sector moves into a more mature phase, according to Chris Oberoi, head of Asia-Pacific research at Bank of America (BofA) Global Research.
“The issue increasingly is: does it add to productivity, and is it being monetised,” Oberoi said. “And the answer is, ‘absolutely yes’.”
Separately, President Xi Jinping and US President Donald Trump are preparing to meet in Washington on Thursday, with trade and technology expected to feature in talks between the world’s two largest economies.
In an interview on Friday, ahead of BofA’s Asia-Pacific Conference that began on Monday in Hong Kong, Oberoi said discussions with clients around AI had become “more nuanced” than a year ago. Investors were moving beyond simply seeking AI exposure to examining models, semiconductors, memory and whether companies can turn investment into revenue, he added.

That shift was reflected in BofA’s September Asia Fund Manager Survey. Four out of five respondents said proven, tangible AI monetisation would most increase their conviction to add to AI-related stocks. The survey polled 190 investors managing US$512 billion in assets, including 87 regional specialists managing US$211 billion.
At the same time, 55 per cent of respondents said AI’s positive impact was already fairly or more than fully reflected in equity valuations, up from 37 per cent in August.
“Fundamentals drive everything, and if you can monetise, then you can fund, and investors will be interested,” Oberoi said.
BofA was still expecting the AI capital-expenditure (capex) cycle to continue, with Taiwan and Japan among its preferred Asia-Pacific markets, according to its report on the survey results.
Taiwan and the United States were tied as the markets most expected by fund managers to benefit from the next AI cycle, with Taiwan exposed to advanced chips, packaging and servers. Meanwhile, South Korea was benefiting from memory demand, and Japan offered exposure to industrial automation and robotics.
China has a broader role in the buildout, according to the bank, supplying the global AI chain while expanding its own infrastructure.
“China is a critical component in the supply chain on the global buildout,” Oberoi said. “But they also have a big capex cycle going on internally to build this out.”




He described a “smile curve”, with semiconductors and memory at one end and models such as those from Kimi, Anthropic, ChatGPT, DeepSeek and Alibaba Group Holding at the other, while robotics and industrial applications faced more intense competition over monetisation. Alibaba owns the South China Morning Post.
BofA expected some progress on trade during the coming presidential summit, including possible tariff reductions in areas such as agriculture or aerospace, and an extension of the existing trade truce. But Oberoi said the meeting was unlikely to fundamentally alter the broader technology rivalry between the two countries.
Going forward, rising interest rates could still become a tail risk for Asian markets, Oberoi said.
“Markets are based on fundamentals. Investors do take into account the direction of rates in their analysis,” he added.
The US Federal Reserve raised its benchmark interest rate by a quarter of a percentage point last week – its first increase in more than three years. BofA maintains its base case, expecting two more quarter-percentage-point increases before the end of the year.
The Bank of Japan on Friday raised its policy rate to 1.25 per cent – the highest level in 31 years – as it continues to move away from its long period of ultra-loose monetary policy.
BofA expects the Bank of Japan to eventually reach 2 per cent and forecasts the yen at 149 to the US dollar at the end of 2026, strengthening from 157 on Monday.
“Markets tend to reflect information as best as they can,” Oberoi said. “Revenues and earnings tend to be key drivers for investors.”


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Investments in artificial intelligence increasingly hinge on monetisation, Bank of America survey finds, as ‘fundamentals drive everything’


Investments in artificial intelligence increasingly hinge on monetisation, Bank of America survey finds, as ‘fundamentals drive everything’.


Asia investors demand AI revenue proof as focus shifts from exposure to earnings: BofA

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Investments in artificial intelligence increasingly hinge on monetisation, Bank of America survey finds, as ‘fundamentals drive everything’

Investments in artificial intelligence increasingly hinge on monetisation, Bank of America survey finds, as ‘fundamentals drive everything’