'Technology will determine tomorrow’s top stocks in emerging markets'
John Citron, investment manager of the JPMorgan Emerging Markets Investment Trust, tells us where he’d put his money


Investors are often drawn to emerging markets for their potential rapid growth, rising consumer wealth, and dynamic companies. However, investing in these markets is complex and requires careful evaluation of each region’s unique challenges and opportunities. The MSCI Emerging Markets (EM) index spans over 1,300 companies across 24 countries, ranging from global technology leaders to smaller niche firms.
Technology has emerged as a dominant sector, now accounting for nearly a quarter of the index. The shift away from traditional industries, such as commodities and cyclicals, toward tech and tech-enabled services is reshaping the emerging-market landscape. Identifying companies that are well-positioned to capitalise on these changes, particularly in AI, digital services, and e-commerce, will be key for investors looking to capture long-term growth in emerging markets.
India and China, the two largest markets, present starkly different investment landscapes. India’s stock market has been buoyed by strong economic growth and investors’ optimism, though some top-performing stocks are now highly priced.
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Since the turn of the year, some of this excess pricing has declined, highlighting better valued opportunities. By contrast, China’s economy is slower, although gradually recovering, but consumer confidence remains weak, and regulatory uncertainty is affecting certain sectors. This divergence illustrates why a one-size-fits-all approach to emerging markets is ineffective.
This is where active management plays a critical role in identifying the right opportunities, focusing on companies with strong growth potential, solid fundamentals, and attractive valuations, as demonstrated by the following three stock picks that illustrate our strategic approach.
Driving the development of AI
As the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (Taipei: 2330) is a crucial player in the global technology supply chain. As the dominant force in advanced semiconductor manufacturing, it supplies the chips that underpin AI development, 5G networks and high-performance computing, making it integral to the digital economy.
The growing reliance on AI, cloud computing, and next-generation mobile networks has only heightened the demand for cutting-edge semiconductors. With its technological expertise and market position, TSMC remains a key player in this evolving landscape.
India’s largest private-sector lender, HDFC Bank (Mumbai: HDFCBANK) is a standout in one of the world’s fastest-growing economies. With a vast customer base and a strong presence in retail and corporate lending, it has delivered solid loan growth, high profitability and a resilient balance sheet. As financial services expand to serve India’s growing middle class, HDFC Bank benefits from increasing demand for digital payments, consumer credit and wealth management. Its market leadership, prudent risk management, and focus on technological advancements make it a compelling long-term investment.
MercadoLibre (Nasdaq: MELI) is Latin America’s largest e-commerce and fintech platform, often compared with a combination of Amazon, PayPal and Shopify. With e-commerce penetration still relatively low in the region, its online retail business continues to experience strong growth. More importantly, MercadoLibre’s fintech arm, MercadoPago, is transforming financial services in regions with limited traditional banking infrastructure. MercadoPago not only facilitates e-commerce transactions but also provides credit to underbanked populations, enabling economic participation for millions.
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John Citron, CFA, executive director, is a portfolio manager within the Emerging Markets and Asia Pacific (EMAP) Equities team based in London. An employee since 2009, he previously worked as a research analyst on the EMAP team, responsible for technology and industrial sectors, and before that as a research analyst within the European Equities Research team, responsible for the capital goods, aerospace, and defence sectors. John is co-manager of the JPMorgan Emerging Markets Investment Trust plc (JMG).
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