Emerging Markets: AI‑Driven Momentum Fuels the Growth Cycle

Progress toward reopening the Strait of Hormuz eased concerns over energy supply, even though crude prices stayed above $90 per barrel and the cease‑fire’s durability remains uncertain. Northern Asian technology stocks led the gains, propelled by robust artificial‑intelligence demand and solid first‑quarter earnings.

Delta Electronics climbed 58% in U.S. dollar terms, driven by outstanding first‑quarter results that reaffirmed its pivotal role in AI infrastructure development. Its power‑supply and thermal‑management solutions have benefited from sustained demand from hyperscale data centers. ASPEED Technology also contributed significantly, rising 55% in dollars thanks to steady demand for its motherboard‑controller chips, which are essential for large‑scale AI server fleet management.

While the Gulf cease‑fire has reduced short‑term tail risks, the broader economic fallout of the conflict—from higher energy prices to disrupted trade routes—remains far from resolved. Markets may continue to experience periods of volatility as the longevity of any agreement stays unclear.

In this environment, we continue to prioritize companies with strong pricing power, durable competitive advantages, and clearly defined long‑term earnings growth. Our objective is to generate attractive returns through portfolios focused on quality‑growth firms that are built to endure.

By Nick Payne, Manager of the Comgest Growth Emerging Markets Fund, Comgest