Mark Mobius advises investing in Big Tech companies with presence in emerging markets.

• Mark Mobius, a seasoned investor in emerging markets, predicts that U.S. technology companies focused on Asia will perform well in 2025.
• Additionally, investors should take into account firms utilizing AI, which Mobius refers to as "accelerated information."
• Despite his admission that some Big Tech stocks had "risen too quickly and to an excessive degree," he remains unconcerned.

Mark Mobius, a veteran emerging markets investor, believes that U.S. tech companies targeting emerging markets present the most promising investment opportunities for the upcoming year.

The chairman of the Mobius Emerging Opportunities Fund stated in an interview with CNBC last week that the U.S market will continue to do well, and he advised focusing on companies and industries that are utilizing technology to enhance productivity, as tech has already excelled.

Those companies that are global in their scope and operate in China, India, and other major emerging market economies are well positioned for growth, he stated.

Chip manufacturers can provide "accelerated information" to investors, which should also be considered.

He stated that AI-accelerated information is not artificial or intelligent, but it can process and analyze information at a faster rate.

As Taiwan, which produces most of the advanced chips in circulation, experiences economic growth in emerging markets that produce semiconductors, his comments emerge.

The global supply chain has made Malaysia deeply embedded in foreign investment in Southeast Asia, particularly in chip production.

During the October IMF annual meetings in Washington, D.C., Malaysia's central bank governor Abdul Rasheed Ghaffour stated that the country accounts for 7% of global semiconductor exports.

Heading toward a tech bubble?

According to Mobius, it is certain that a tech bubble is imminent due to the inflated valuations of the Magnificent Seven, which includes stocks such as Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, and Alphabet.

Although he acknowledged that some stock prices had risen at an unsustainable pace, he remains unconcerned.

He stated that while the price-to-earnings ratio is a common measure for evaluating the value of an industry or stock, it is not sufficient when considering the rapid growth rates of these companies.

Nvidia has experienced significant growth due to the ongoing artificial intelligence boom, with its next-generation AI chip Blackwell gaining attention. Its shares have increased by nearly 300% in 2024, making it the world's most valuable publicly traded company.

Although some investors worry that Nvidia and other Big Tech stocks may not sustain their rapid growth, Mobius remains optimistic about their prospects.

"Magnificent Seven earnings are growing at a terrific pace and will likely continue to do so. While some of these companies may be expensive, Mobius believes they will still perform well," he added.

"Additionally, new companies are emerging that are profiting from these alterations."