Some household emerging market companies like Samsung, Infosys and TSMC may also spring to mind.
However, the EM technology sector is far broader than that, being home to a number of world leading companies in spaces such as hardware, software, IT outsourcing, semiconductors, and cloud storage services.
The information technology sector is currently 20% of the MSCI Emerging Markets Index, while ten years ago it was 15%.
One of the most attractive areas in the EM space is the physical infrastructure underpinning the growth of AI development.
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Given the wide reach of AI, spending on GPU (Graphics Processing Unit) and DPU (Data Processing Units) servers is expected to grow significantly, as they are central to the accelerated data processing required to train AI models.
Our estimates show that spending on these servers will outstrip traditional CPUs (Central Processing Units) by 2025 and continue to grow in the following years.
Taiwan, for example, holds a competitive advantage in the AI global server market and we forecast that just the top five Taiwanese suppliers could eventually supply almost half of the entire market by 2029.
A key component of the supply chain for developed markets
EM companies often play a significant role in the supply chain of the big international players who are front and centre of the technology sector.
Nvidia is perhaps the best-known AI company in the world and since shifting its business to this technology, it has increasingly looked to China for its supplies.
Nvidia has seen a meteoric rise in the past year or so following the explosion in interest in AI, but it is also worth noting the top five Chinese electronics manufacturing services and original equipment manufacturers for AI servers are the same top five providers for traditional servers.
This illustrates the benefit these companies have gained from investing in the technology much earlier. Their leading positions in traditional servers have given them a better view of future trends.
Notably, these companies have continued to invest in new technology as their well-diversified business models generated enough revenue to support the capital expenditure.
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Technology, by its very nature, evolves rapidly. If we look at list of the top ten semi-conductor design companies in Taiwan in 1999, three remain in the top ten today even after the dotcom bubble and other crises (Mediatek, Realtek and Novatek).
As we look to the future, we also anticipate that in EM, the tech companies that have historically been the suppliers to the big names, may well emerge as the big players themselves.
The long-term winners in AI all share one common feature: early investment in research and development (R&D).
The early adaption of this technology means these companies are far ahead of their competitors in leveraging newer evolutions.
Omar Negya is manager of the JPMorgan Global Emerging Markets Income fund
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