Timothy Moe, head of Asia-Pacific equity strategy at Goldman Sachs, says AI-related stocks remain attractive despite rising government bond yields and that the firm is in the "longer-for-longer" camp on rates. He cites ultra-scale cloud providers' planned capex of about $800bn this year, rising to roughly $1.2trn by 2027, as a key demand signal for the Asian AI hardware supply chain. Asian equities trade at about 10x PE, near the low end of their historical range, which Moe says adds valuation s

Timothy Moe, head of Asia-Pacific equity strategy at Goldman Sachs, says AI-related stocks remain attractive despite rising government bond yields and that the firm is in the "longer-for-longer" camp on rates. He cites ultra-scale cloud providers' planned capex of about $800bn this year, rising to roughly $1.2trn by 2027, as a key demand signal for the Asian AI hardware supply chain. Asian equities trade at about 10x PE, near the low end of their historical range, which Moe says adds valuation support while corporate earnings growth should help buffer a high-rate environment. He expects market volatility to persist into the U.S. midterms, with high energy prices and geopolitical risks adding downside pressure, but sees a potential year-end rally driven by earnings and valuation recovery once that phase passes.