He said the AI sector today differs from past bubbles, as companies are now showing real earnings. “Yes, there’s excitement, but the earnings growth we’re seeing is real,” he said, pointing to firms like Nvidia that have delivered strong results.
Also Read | Anand Shah says India’s market strength lies in savings moving beyond gold and real estateLim added that WhiteOak prefers to look beyond well-known names to find lesser-known opportunities in niche areas such as power supply and custom chip design.
Discussing funding and sustainability, Lim said large players like Google, Amazon, and Meta are using their strong cash reserves for AI investments, while “risk starts to rise when companies begin funding projects with debt.”According to him, Asia remains central to the AI ecosystem as “the picks and shovels” providers. “There is no AI without companies in Taiwan and Korea,” he said. These firms benefit regardless of which US tech giant eventually dominates AI adoption.
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On India’s semiconductor ambitions, Lim said the country has moved toward playing to its strengths. “India is now focusing on the back-end semiconductor processes where its skilled and abundant labour makes a difference,” he said, calling it a more realistic approach that can build capability over time.
He also cautioned investors about short-term risks. “In a sector with so much excitement, there will always be volatility,” Lim said, adding that investors should look at how dependent companies are on AI revenues to gauge sustainability.
For the full interview, watch the accompanying video
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