Asia investors seek AI revenue proof as focus shifts from exposure to earnings

By the Editorial Team · Tuesday, September 22, 2026

Investors in Asia are increasingly demanding proof that AI technologies can generate real revenue, shifting their focus from broad sector exposure to concrete profitability. This change highlights a maturing AI market where investment decisions are now driven by companies' ability to convert innovation into sustainable earnings, particularly in regions like Taiwan, Japan, and China.

Investors in Asia are increasingly demanding clear evidence that artificial intelligence (AI) initiatives can generate tangible revenue and earnings, signaling a shift from simply seeking exposure to the sector toward a focus on profitability and monetisation. This evolution reflects a maturing phase in the AI industry, according to Chris Oberoi, head of Asia-Pacific research at Bank of America (BofA) Global Research.

In an interview ahead of BofA’s Asia-Pacific Conference in Hong Kong, Oberoi noted that investor conversations around AI have become more sophisticated compared to a year ago. He said clients are now evaluating specific components of the AI ecosystem—such as semiconductor production, memory technologies, and AI models—to determine whether companies can convert investment into actual revenue streams.

The findings of BofA’s September Asia Fund Manager Survey underscore this trend. The survey, which polled 190 investors managing a combined US$512 billion in assets—including 87 specialists with US$211 billion focused on Asia—revealed that 80 percent of respondents would increase their investment conviction in AI-related stocks once there is proven monetisation. Additionally, 55 percent said the positive impact of AI is already fairly or fully reflected in current equity valuations, a rise from 37 percent in August.

Oberoi emphasized that fundamental financial performance remains paramount. “If you can monetise, then you can fund, and investors will be interested,” he said.

BofA continues to anticipate ongoing capital expenditure cycles in AI across Asia-Pacific markets. Taiwan and Japan were highlighted as preferred markets, with Taiwan and the United States regarded as most likely to benefit from the next wave of AI investment. Taiwan’s advanced chip manufacturing, packaging, and server technologies position it strongly, while South Korea benefits from continued demand for memory chips. Japan offers exposure to industrial automation and robotics, fields which face more competitive challenges regarding monetisation.

China plays a critical role in the global AI supply chain, both as a supplier of key components and as a market undergoing substantial internal capital investment to build out its infrastructure. Oberoi described the sector’s value chain as a “smile curve,” with semiconductors and memory at one end and AI model developers—including companies such as Kimi, Anthropic, ChatGPT, DeepSeek, and Alibaba Group Holding—at the other. Meanwhile, robotics and industrial applications represent segments where monetisation hurdles remain more pronounced.

The evolving investor focus reflects growing sophistication as the AI sector develops, with a clear emphasis on the translation of technological advances into concrete financial results.

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