Many Thai investors may be accustomed to portfolios centered on domestic stocks, but as the world advances driven by AI and technology investments, capital and growth opportunities are no longer confined within the country.
, MFC Asset Management Public Company Limited (MFC) believes that while there are still opportunities in the Thai stock market, diversifying portfolios globally can enhance the chance to benefit from emerging mega-trends.
One highly watched theme is "memory chips," a crucial component of the AI era facing sharply rising demand but with only a few major global producers, making this industry a high-potential business that has prompted the launch of a dedicated fund to invest in this theme.
Chaowkorn Chotibundit, Head of Investment Strategy at MFC Asset Management Public Company Limited (MFC), said the overall outlook for the Thai stock market this year is quite positive, with net foreign investment reversing to a net purchase of over 20 billion baht after prior sell-offs totaling hundreds of billions.
Key supporting factors include Thailand's economy expected to grow around 1.9-2%, along with political stability and clarity that boost confidence in policy continuity.
Additionally, Thailand benefits from high-value investment promotion applications (BOI) in digital and data center projects, reaching the hundred-billion-baht level, which will drive private sector investment and overall economic growth.
MFC has set a target for the Thai stock index, SET, at 1,600 points this year, with earnings per share (EPS) estimated at 97 baht and a price-to-earnings ratio (P/E) around 15-16 times.
In the short term over the next 3-6 months, the index's upside may be limited, but downside risks are not expected to be severe since the market has largely priced in various risks.
He recommended investors focus on rotating sectors to generate returns, emphasizing retail stocks expected to recover after Q2/2026 consumption pressure from high oil prices, tourism stocks poised to rebound in the second half, and commercial banks attractive for their high dividend yields.
Regarding portfolio allocation, Chaowkorn suggested investors broaden their investment horizons globally, recommending more than half of the portfolio be allocated to foreign stocks.
Based on true market capitalization proportions, foreign stocks should comprise 80-90% of the portfolio, with only 10-20% in Thai stocks.
For alternative assets like gold, it remains attractive for long-term investment, with a suggested gradual accumulation at about 5% of the total portfolio.
Among the current global mega-trends, one of the most closely watched themes is the growth of the AI industry, which not only creates opportunities for model developers but also benefits key infrastructure businesses such as "memory," which faces limited supply amid rapidly increasing global demand.
Thanachot Rungsitthiwat, Managing Director of MFC Asset Management Public Company Limited (MFC), said we cannot yet identify a winner in the AI industry, but AI's growth represents a structural transformation across sectors—from energy, data centers, semiconductors, networks, optics, AI models, to various applications.
Key factors driving global investment include the U.S. Federal Reserve's monetary policy direction, strong corporate earnings, the ongoing AI mega-trend, capital rotation into IT-related stocks, and easing geopolitical risks.
In the AI era, global demand for memory continues to rise, especially high-performance memory like DDR5 or HBM used in AI applications, with few major producers currently.
The main advanced memory manufacturers are only three: South Korea's Samsung Electronics and SK hynix, and U.S.-based Micron Technology, while chip giants like Nvidia, Intel, AMD, and Qualcomm depend on these memory producers.
MFC data indicates the memory industry market size is expected to grow from about $214 billion in 2025 to around $1.68 trillion in 2028—nearly eightfold in three years—with cloud providers' memory investment rising from 16% in 2025 to 73% by 2027.
Furthermore, the HBM market, critical for AI memory, remains tight in supply and is expected to see demand surpass capacity through 2028, benefiting producers' pricing power and profit margins.
Based on these perspectives, MFC has launched the M-MEM fund targeting investments in global memory chip stocks, selecting companies listed on major exchanges like NYSE, Nasdaq, HKEX, TSE, and European markets.
They screen by market capitalization, liquidity, and thematic relevance before selecting approximately 7-10 stocks.
The fund's sample portfolio includes Samsung Electronics, SK hynix, Micron Technology, SanDisk, Kioxia Holdings, Western Digital, Intel, and Seagate Technology, with main investment weightings in companies playing key roles in the memory industry.
Thanachot believes that over the next year, valuations of these stocks remain attractive and the AI hardware theme has growth potential, though over the next three years, portfolio adjustments may be needed based on industry developments.
For investment outlook in the second half of the year, a rising interest rate environment could impact tech stocks short term, but if companies grow earnings, stock prices will eventually reflect strong fundamentals.
Historically, every tech industry cycle experiences periodic corrections, but stock prices ultimately rise aligned with earnings growth.
However, investors are advised not to concentrate too heavily in this theme, recommending diversified allocations to increase return opportunities and upside potential over the long term.
The M-MEM fund invests globally in AI-themed memory technology stocks, with a minimum initial investment of 500,000 baht and subsequent minimums of 1,000 baht, offered exclusively to high-net-worth and institutional investors.
Due to its concentrated investment nature, per SEC regulations, reflecting the limited number of major global memory chip producers, the fund's portfolio is more concentrated in certain stocks than typical funds.
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