What Mark Mobius Is Betting Big On As US-China Rivalry Heats Up: 'Number One Category In Our Portfolio'

Emerging markets expert Mark Mobius reportedly said he is betting big on semiconductor shares as the U.S. and China hike investments in the sector.

Chipmakers are "the number one category we have in our portfolio," Mobius told Bloomberg Television. The companies associated with the sector are going to do well as "both the U.S. and China are putting enormous amounts of money in semiconductor research and production," he added.

Also Read: ‘Very Bullish’ Mark Mobius Predicts India’s IT Sector To Play Big Role In Global Semiconductor Production

Price Action: Chip stocks have had a great start this year after rising interest rates led to a market rout in 2022. The Philadelphia Semiconductor Index rose 20% this year compared to a 4.39% gain in the S&P 500 Index.

Shares like NVIDIA Corporation NVDA, and Advanced Micro Devices, Inc. AMD have performed well this year but Intel Corporation INTC is still in the negative territory.

Mobius also said he is "very bullish" on India as the country takes a larger share of manufacturing in Asia.

Asia is in a lucrative position to benefit from the sector's improving outlook as it houses global giants such as Taiwan Semiconductor Manufacturing Co. Ltd. TSM and South Korea's Samsung Electronics Co. SSNLF, the report said. Mobius believes the outlook remained "good" for China and Indonesia.

The technological conflict between the U.S. and China is leading to a flow of billions of capital — some of it direct from government coffers — into the chip industry as countries compete to build up domestic semiconductor production, the report said.

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