The next big advance in artificial intelligence may come from thousands of miles away.
Tim Urbanowitz, chief investment strategist for Innovators at Goldman Sachs Asset Management, urges investors to look beyond their own backyards to emerging markets.
“This is where there’s a lot of money to be made in AI trading,” he told CNBC’s “ETF Edge” this week, calling it “the next big wave.”
Urbanovic is particularly bullish on Taiwan and South Korea when it comes to building AI. He points out that they make up a large part of a wide range of fields iShares MSCI Emerging Markets ETFup 26% year-to-date as of Thursday’s close.
“These are major players in the AI trade and AI space, but they haven’t really appreciated as much as the U.S.,” he said. “We believe there is still a long way to go before this AI trading can deliver huge profits.”
of iShares MSCI Taiwan ETF Up almost 67% so far this year, iShares MSCI Korea ETF As of Thursday’s U.S. close, the market was up 109%. Both Taiwan and South Korea-focused ETFs hold several AI memory-related chip names.
In a special note to CNBC, Urbanovic highlighted what is being actively managed. Goldman Sachs Active Beta Emerging Markets Equity ETF As a way for investors to capitalize on the potential AI-driven gains in emerging markets.
Let’s experience AI overseas
Still, Urbanovic is not abandoning domestic trade when it comes to AI.
“I think the United States is still in a position to succeed,” he said.
