AI Boom: Why Foreign Money Chased Chip Stocks Instead Of India | Chris Wood, Jefferies

The AI boom has reshaped global equity flows, with semiconductor companies capturing much of the earnings upside. Christopher Wood, Global Head of Equity Strategy, Jefferies, says the shift explains much of the foreign selling seen in Indian equities. In a conversation with Sakshi Batra, Business Today TV, Wood says investors increased allocations to Korean and Taiwanese semiconductor stocks, particularly as memory-chip earnings surged. He argues that India’s data-centre investments and semiconductor programme are positive developments, but are not unique to the country. Wood says India could outperform if the AI trade reverses, while warning that the scale of AI-related investment could eventually create risks of capital destruction. He also highlights the divergence between semiconductor companies generating profits and hyperscalers carrying significant investment and depreciation costs.