Where investors may find the next ‘big wave’ for AI trade

The next big gains in artificial intelligence could come from thousands of miles away.

Goldman Sachs Asset Management’s Tim Urbanowicz, chief investment strategist at Innovator, urges investors to look beyond their backyards to emerging markets.

“[It’s] He told CNBC’s “ETF Edge” this week that there’s a lot of money to be made in AI trading, calling it “the next big wave.”

Urbanowicz is particularly optimistic about Taiwan and South Korea when it comes to the development of artificial intelligence. He states that they are a large part of a large segment of society. iShares MSCI Emerging Markets ETFIt was up 26% year to date as of Thursday’s close.

“These are major players in the AI ​​business where valuations have not risen as much as they have in the U.S.,” he said. “In our view, there are still plenty of ways to make big gains from this AI trade.”

iShares MSCI Taiwan ETF up almost 67% so far this year iShares MSCI South Korea ETF The market was up 109% as of Thursday’s US close. Both Taiwan- and South Korea-focused ETFs have various chip names related to AI memory.

In an exclusive note to CNBC, Urbanowicz wrote that actively managed Goldman Sachs ActiveBeta Emerging Markets Stock ETF as a way for investors to capitalize on the potential gains driven by AI in emerging markets.

But Urbanowicz is not abandoning domestic business when it comes to artificial intelligence.

“We think the United States is still positioned to succeed,” he said.