As Asia's artificial intelligence-fueled stock boom cools, a supposed “AI loser” is emerging from the wreckage as an unlikely haven: India.Indian equities' lack of direct AI exposure, whether to creators of large language models or semiconductor and chip manufacturers, dampened foreign investors' enthusiasm for the country's stocks for much of 2025 and 2026, as money instead flooded into South Korea and Taiwan's tech-saturated markets.
But that trend has shifted this summer.
Since mid-June, equities in South Korea and Taiwan have stumbled, reflecting rising anxieties about the durability and profitability of massive AI capital expenditures. Meanwhile, India's benchmark stock index has climbed 5 percent as money has pivoted to a perceived "anti-AI" trade.
This remains a modest change. The benchmark indices in South Korea and Taiwan are up around 90 percent and 80 percent, respectively, over the past 12 months, compared with being down 5 percent for India.
But this recent rotation may be more than just a short-term defensive move, as it comes at a fortuitous time for India, coinciding with several tailwinds in the domestic economy. At the same time, India is finding its place in the AI ecosystem, meaning it could turn out not to be an anti-AI trade after all, but a different, less concentrated type of tech bet.
