AllianceBernstein sees AI bubbles 'forming at the edges'

• AI supply chain in South Korea is seeing 'bubbles forming at the edges' due to 'over-earning' by tech suppliers.
• Investors should exercise careful stock selection within the AI sector, rather than broad buying.
• Rising oil prices and anticipated Fed rate hikes (90% chance of 375-400 bps) create uncertainty, but EM markets show varied responses to rate changes.
• For EM equity investors, the focus shifts to earnings absorption of volatility rather than just rate movements.

AllianceBernstein's John Lin warns of 'bubbles forming at the edges' in parts of Asia's AI supply chain, driven by 'over-earning' among tech suppliers. He advises investors to be highly selective within AI rather than abandoning the sector entirely. The discussion also touches on the broader market implications of rising oil prices and anticipated Fed rate hikes for emerging markets.