Artificial intelligence and semiconductors, two emerging markets that will raise the GDP of China and the USA
New digitized products and services generate data at an exponentially increasing rate and demand more and more computing power to manage, interpret and put them into practice. In emerging markets, the technology sector is the second largest in the index MSCI Emerging Market (with 21.2%, slightly lower than financials with 21.9%). Given the important role of emerging markets in many sectors, new and old constituents of the index will be key to the next phase of digitalisation, Digital 4.0.
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Technological advances have a positive top-down effect: according to estimates by PwC, artificial intelligence alone will raise GDP estimates in China by 26.1% and in North America by 14.5% by 2030. These two countries account for about 70% of the global total. We believe that with advanced technologies, vast amounts of data, and rapid adoption, North America has an above-average positive impact.
As far as emerging markets are concerned, the limited availability of advanced chips in China it is compensated for by the abundance of data, excellent personnel, opportunities at the application level (being a highly digitized economy) and the adoption of a series of policies with possible above-average positive effects on GDP.
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