Asian tech stocks may keep outperforming consumer shares as investors weigh the Iran war’s potential to lift inflation more than it disrupts AI supply chains.
A regional tech gauge is up over 19% year-to-date versus a 7% drop in consumer discretionary, and both are down more than 9% since the conflict began.
Analysts said foreign flows are concentrating on AI-linked sectors, while higher fuel costs could curb household spending. Chipmakers may face selloffs but less demand erosion than consumer firms.
Asia’s tech benchmark trades at about 12 times forward earnings versus 15 times for consumer discretionary, and consumer sentiment may stay weak until there is more clarity on the war’s outlook.
🔗 Source: Bloomberg
Originally written by: Grace Priscilla Teo
Source: Tech in Asia
Published on: 25 March 2026
Link to original article: Asian tech stocks seen outperforming as AI demand holds
