By Zoey
Hedge fund managers are increasingly directing their attention toward artificial intelligence infrastructure companies and consumer brands popular with younger generations, as investors search for the next wave of high-growth opportunities in global markets.
At this year’s Sohn Investment Conference in Hong Kong, fund managers presented investment ideas ranging from AI-driven data centre operators and semiconductor supply chain firms to pet food makers and instant noodle brands, reflecting how technology and changing consumer behaviour are reshaping investment strategies across Asia and beyond.
The conference highlighted the growing dominance of AI-related trades in financial markets, particularly after a powerful rally in semiconductor stocks helped major Asian indexes outperform many Western counterparts this year. Investors attending the event focused heavily on businesses positioned to benefit from the expanding AI ecosystem, especially companies involved in cloud infrastructure, chip manufacturing, data centres and electronic components.
Among the standout investment themes was the rapid rise of AI-focused data centre companies. Kenny Zhang, chief investment officer of Hong Kong-based Valliance Asset Management, expressed strong optimism about CoreWeave, a U.S.-based firm that supplies cloud computing capacity powered by advanced chips from Nvidia.
Zhang argued that artificial intelligence is creating a new economic model in which digital agents increasingly perform tasks once handled by humans. According to him, companies enabling this transition stand to benefit enormously as businesses worldwide scale up their AI capabilities.
He said the next stage of technological development would involve enterprises effectively exporting “knowledge labour” to AI-powered digital workers, creating unprecedented demand for computing infrastructure. In that environment, firms such as CoreWeave could become central pillars of the emerging AI economy.
Valliance Asset Management projects that CoreWeave’s annualised revenue could surge to approximately $55 billion by 2028, a dramatic rise from around $1 billion recorded in early 2024. The forecast reflects broader market expectations that demand for AI processing power will continue expanding rapidly over the coming years.
Beyond cloud infrastructure, hedge funds are also identifying opportunities in parts of the semiconductor supply chain facing tightening capacity constraints. One of the areas attracting particular attention is the printed circuit board industry, a critical component sector supporting advanced chip production and AI hardware manufacturing.
Hong Kong-based CloudAlpha Capital said PCB shortages are becoming increasingly severe across semiconductor supply chains as demand for AI servers accelerates globally. The firm highlighted Taiwan’s Compeq Manufacturing as one of its preferred investments.
Chris Wang, founding partner and co-chief investment officer at CloudAlpha Capital, said supply bottlenecks in PCB manufacturing could become so significant that even industry giant TSMC may face production constraints within the next one to three years.
According to Wang, Compeq is well positioned to benefit because the company is actively expanding manufacturing capacity while still trading at what he considers an attractive valuation. He noted that the company, which supplies components to Apple, is valued at less than 15 times earnings despite strong long-term growth prospects linked to AI hardware demand.
Investors are also betting that the global buildout of AI infrastructure will fuel growth in related industries such as construction and electrical engineering. Tokyo-listed Kandenko was identified by Keyrock Capital Management as a likely long-term beneficiary of the AI data centre expansion cycle.
The hedge fund described Kandenko as a potential “structural winner” as governments and private companies invest heavily in constructing new data centres to support the growing computing requirements of artificial intelligence systems.
While AI dominated much of the investment discussion, hedge funds also turned their focus toward evolving consumer spending habits, particularly among younger generations whose purchasing preferences are reshaping global markets.
Jun Y. Oh of Washington-based Griet Capital recommended Thailand’s i-Tail Corporation, pointing to long-term structural growth in the global pet care industry.
Oh said attitudes toward pets have changed dramatically among younger consumers, who increasingly treat animals as members of the family and spend heavily on premium products and services. He noted that in South Korea, sales of pet strollers surpassed baby strollers last year, illustrating how demographic and cultural changes are transforming consumer behaviour.
He also pointed to data showing that Generation Z consumers spend more than $6,000 annually on their pets, significantly more than older generations. Investors believe this trend could support sustained growth for companies operating in pet food, pet healthcare and related lifestyle sectors.
Another consumer-focused investment idea came from Hong Kong’s Kaleido Capital Partners, which highlighted South Korean food producer Samyang Foods as a company benefiting from strong international demand among younger consumers.
Known globally for its spicy instant noodles, Samyang Foods has experienced rapid overseas sales growth, particularly in Europe and the United States, where Korean food culture continues gaining popularity through social media trends and global entertainment exports.
Kaleido Capital believes the company still has significant upside potential as international expansion drives stronger revenue growth and improving profit margins.
The Sohn conference demonstrated how hedge funds are increasingly blending technology-driven investment themes with shifts in consumer culture, seeking opportunities both in the infrastructure powering artificial intelligence and in brands capturing the spending power of younger generations worldwide.