Pershad said the world is entering a new market phase where “tech and policy have become inseparable drivers of wealth creation.” Speaking to ET Now, he noted that while fears of an AI bubble and valuation froth exist, structural demand for semiconductors, memory, and clean energy is likely to sustain the long-term equity uptrend.
“Markets will keep moving higher because they have to — they remain the best tool for wealth preservation and growth,” Pershad said, citing ongoing corporate reforms in Japan, South Korea’s value-up program, and China’s re-embrace of entrepreneurship as long-term positives.
India’s position strengthening amid global dispersion
While developed markets like the US have seen concentrated gains in Big Tech, Pershad said India’s setup into 2026 looks increasingly attractive. “The dispersion between India and emerging markets is narrowing, and India’s macro and policy tailwinds are strong,” he added.
He emphasized that active stock-picking will define this phase, as investors rotate between countries and sectors. “We were underweight India earlier this year due to better near-term opportunities in Japan, Korea, and China, but India’s growth outlook is again turning favorable.”
AI hardware, not software, will drive next global upswing
Pershad expects AI hardware — semiconductors, memory, and power infrastructure — to be the epicenter of the next global investment cycle.“The current chip and power architectures cannot sustain the exponential rise in AI and data needs. That’s where the next trillion-dollar opportunities lie,” he said, noting that memory and equipment makers in Japan, Germany, South Korea, and the US are poised to benefit.He also warned that “software and IT services will face margin and relevance pressures” as automation and AI commoditize traditional coding work.
China’s silent rise: From copycat to global innovator
Contrary to western narratives, Pershad argued that China is evolving from a fast follower to a genuine innovator across sectors like EVs, robotics, and consumer electronics.
“China now controls about 40% of global semiconductor manufacturing equipment spend, up from 5% a decade ago,” he said. “Its companies are building their own chip standards and challenging Nvidia and others.”
He pointed to BYD’s success in electric vehicles and Huawei’s advances in high-end devices as proof that Chinese innovation is reshaping global supply chains. “We’re seeing Chinese firms dominate not just on cost, but on design and tech leadership.”
Key Takeaways
- Tech, public policy, and demographics to drive global equity growth.
- AI hardware cycle will create the next wave of global winners.
- China’s shift to self-reliance is a long-term game-changer.
- India’s equity market setup for 2026 looks increasingly strong.
- Active stock-picking across Asia offers the best alpha opportunities.