Equity investors in Southeast Asia are seeking opportunities to invest in the artificial intelligence (AI) theme as tech giants increase spending on infrastructure in the region. Power producers, IT services, telecommunications, and semiconductor firms are well-positioned to benefit from the growing data center industry in Southeast Asia. The region's lower production costs and strong position in the global semiconductor value chain makes it an appealing hub for data centers. The potential earnings from AI are significant, with Southeast Asia expected to become the second-largest non-US data center provider by 2027. Here are several Southeast Asian stocks that analysts believe are best positioned to ride the AI boom: 1. YTL Power: Shares of Malaysian utility firm YTL Power International Bhd. have doubled since signing an agreement with Nvidia to build an AI data center in Johor. The firm's captive 500MW solar power supply makes it attractive to customers seeking clean energy. 2.

Tenaga Nasional: As the sole grid operator in Malaysia, Tenaga Nasional Bhd. is expected to benefit significantly from the growth in ASEAN data centers. The firm aims to double its profits in three years, driven by robust power demand and its push into renewable energy. 3. Delta Electronics Thailand: Delta Electronics Thailand PCL, a leading power module supplier, will benefit from the upcoming AI data center projects in ASEAN. The firm's expansion of manufacturing capacity and cooling solutions meet customer demands for supply chain resiliency. 4. Gulf Energy Development: Thailand's Gulf Energy Development PCL is well-established in the energy and infrastructure business and is expected to benefit from growing electricity demand and expanding data center infrastructure. 5. FPT Corp. : Vietnam's biggest listed technology company, FPT Corp. , has experienced a strong rally in its shares this year, partially attributed to its partnership with Nvidia. The company is expected to achieve earnings growth of over 20% in the next two to three years. Overall, Southeast Asian stocks in the power, IT services, telecommunications, and semiconductor sectors are seen as attractive opportunities for investors aiming to capitalize on the AI boom.