Overweight stance kept on Korean and Taiwanese markets

The U.S. investment bank's forecast, presented in its year-ahead market outlook, centers on the judgment that AI-related shares will remain the dominant force in equities for another year. As part of that view, JPMorgan is keeping its overweight allocations on South Korea and Taiwan unchanged, the two markets most closely tied to the global AI hardware supply chain through their semiconductor and electronics industries.

The outlook did not specify target index levels or sector-by-sector return forecasts, and the bank's positioning on other Asian markets was not detailed in the available materials.

AI leadership central to the regional call

The continued overweight on Korea and Taiwan signals JPMorgan's expectation that demand for semiconductors and related hardware — including memory and GPU-linked components — will keep supporting the region's largest listed companies, such as Samsung Electronics and SK hynix, whose shares have been major beneficiaries of AI infrastructure spending.

JPMorgan's forecast rests on the AI investment cycle extending into next year. The outlook materials reviewed do not address potential risks to that cycle, such as a slowdown in data center spending or changes in export controls.

JPMorgan's projection that AI will again lead stock markets next year, paired with its unchanged overweight stance on Korea and Taiwan, is consistent with the available outlook materials and accurately reflects the bank's stated position — a claim that is Mostly True.