Emerging-market stocks set for best earnings growth in decades
Emerging-market stocks are on track for their strongest earnings growth in over 20 years, largely driven by a surge in artificial intelligence (AI) investments.
According to Morgan Stanley's Jonathan Garner and team, after years of lackluster results, companies like Samsung, SK Hynix, and TSMC are now driving big upgrades—especially with their focus on semiconductors.
Year-end target raised to 1,700 from 1,400
Morgan Stanley just bumped up its year-end target for the MSCI Emerging Markets Index to 1,700 from 1,400, expecting earnings per share to hit $118 by late 2026.
Tech is clearly leading the way, but not everywhere: China's still struggling with weak demand and Baidu's revenue dip, while India is finally showing some profit momentum.
The report also points out that most of this growth is coming from just a few tech-heavy sectors and regions—so it's a win for chipmakers and Korea, but less so for others.