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Abrdn's Emerging Markets Fund Soars with Memory Chip Bets

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  Published in Stocks and Investing on Thursday, January 15th 2026 at 19:53 GMT by Bloomberg L.P.

London, Friday, January 16th, 2026 - In a surprising display of foresight and conviction, Abrdn Plc.'s emerging markets equity team is significantly outperforming their competition, achieving returns that place them in the top 3% of their peer group. The secret to their success? A strategic and substantial investment in memory chip manufacturers.

According to recent reports, the Abrdn Emerging Markets Equity Fund has delivered a remarkable 16% return over the past year. This robust performance dwarfs the average return of 6.7% observed within the Bloomberg Emerging Markets Equity category. This success highlights a divergence from prevailing market sentiment and underscores the team's willingness to embrace a potentially risky but ultimately rewarding investment strategy.

At the helm of this successful team is Michael Gush, head of emerging markets equities at Abrdn. Gush's leadership has guided the team towards a concentrated position in semiconductor companies, specifically those involved in the production of memory chips - the crucial components underpinning a vast array of modern technologies, from smartphones and laptops to increasingly sophisticated data centers and artificial intelligence infrastructure.

The decision to overweight the semiconductor sector, particularly memory chips, stands in contrast to broader market anxieties surrounding a potential global economic slowdown and escalating geopolitical tensions, notably the ongoing complexities of trade relations with China. While acknowledging these significant risks, Gush remains steadfastly optimistic about the long-term prospects for the memory chip industry.

"We've been overweight semiconductors, particularly memory chips, for a while," Gush stated in a recent Bloomberg Television interview. "They've been very resilient. Demand remains strong."

This resilience stems from the fundamental and ever-increasing reliance on data storage and processing capabilities across multiple sectors. While consumer electronics sales may fluctuate, the long-term demand for memory chips is fueled by the exponential growth of data generation - driven by trends such as cloud computing, the Internet of Things (IoT), 5G network expansion, and the burgeoning artificial intelligence landscape. Data centers, the backbone of the digital economy, are constantly expanding, requiring ever-larger capacities of memory chips.

The team isn't oblivious to the challenges. China's economic performance remains a critical factor, and any significant downturn could impact global demand. Potential trade disruptions, influenced by ongoing international relations, also pose a threat to the supply chain and market stability. However, the Abrdn team believes these risks are outweighed by the structural tailwinds supporting the memory chip sector.

"There are definitely risks out there," Gush conceded. "But we believe that memory chips will continue to be in high demand for the foreseeable future."

This strategy showcases a willingness to actively manage risk and exploit perceived market inefficiencies. While many investment firms might shy away from a sector perceived as volatile or exposed to geopolitical instability, Abrdn's emerging markets equity team has demonstrated the potential for substantial rewards by maintaining a long-term perspective and focusing on the underlying fundamentals of a critical technology component. The fund's significant outperformance serves as a case study for investors seeking to navigate the complexities of the emerging markets landscape and highlights the importance of contrarian thinking and a deep understanding of technological trends.