July 20, 2023 at 9:32 PM EDT

A $1.4 billion fund run by JPMorgan Asset Management is betting on Asia’s chip supply-chain stocks playing catch up with their surging US counterparts.

Oliver Cox, co-manager of the JPM Asia Pacific Equity Fund, expects investors to start pricing in more artificial intelligence-related orders for Asian companies, leading to higher valuations in the second half of 2023. There’s room for AI to become a bigger driver of regional earnings and the order rush will likely unfold through 2024, he said.