AI Capex peak fears: Why Jefferies raised India weightage while trimming Korea & Taiwan

Christopher Wood, global head of equity at global investment bank Jefferies has raised allocation to India by two percentage points and maintained the “Overweight” stance. Wood, in his weekly GREED & fear report, said the weightings in Korea and Taiwan will be reduced by one percentage point each, while maintaining “Underweights” stance.

Wood said that financial markets are signaling a “growing unwillingness” to fund investments related to artificial intelligence (AI). “One of the messages of the latest Asia Maxima quarterly is that the most plausible way the AI capex arms race will end is that the credit card will be taken away,