The MSCI Asia Pacific Index has risen more than 12% in 2026. This growth contrasts with losses in US markets. The S&P 500 is down 0.2% for the year, and the Nasdaq 100 has dropped about 2%. The US selloff is due to fears that AI could hurt software, legal, and real estate services. Global investors are moving away from AI pioneers with heavy spending. Instead, they prefer hardware makers with strong pricing power, mostly in Asia. Memory chip prices have surged. This benefits big players like Samsung Electronics. Taiwan Semiconductor Manufacturing Co. (TSMC) plays a key role as the world's leading contract chipmaker, supporting Taiwanese stocks. Asia's large base of chip manufacturers, semiconductor foundries, and assemblers is vital for AI infrastructure. This has helped the region stay strong despite Wall Street's recent slump. Micron Technology talked about tight memory chip supply, while Nvidia discussed steady spending. Meanwhile, the Nasdaq 100 lost 4.6% and about $1.5 trillion in value over 10 sessions due to a software stock selloff. Stephanie Aliaga, a global strategist at JPMorgan Asset Management, said in a Bloomberg TV interview, "Some of the scares in the US are also good news in Asia, particularly when thinking about what infrastructure is really needed to harness agentic AI." She added, "What markets are really beginning to price in is this ChatGPT moment for AI agents." Asian chipmakers have big weight in local markets. TSMC makes up nearly 45% of Taiwan’s Taiex index, three times more than a decade ago. South Korea’s Kospi is dominated by Samsung Electronics and SK Hynix, which together form about 40%. The AI-related selloff also hit US real estate and insurance stocks. But Asian companies in these sectors faced less harm, partly because they are less exposed to new technologies. Japan’s Topix insurance sub-index rose 6.2% since February 3, and its real estate index jumped 15%. Andrew Jackson from Ortus Advisors said, "Old school wins the day so far." The correlation between Asian and US stocks has slid to 0.43, the lowest since June 2022. Asian stocks are expected to keep outperforming due to their unique AI roles, cheaper valuations, and stronger earnings. Elfreda Jonker, a portfolio manager at Alphinity Investment Management, said, "What we are investing in are the AI enablers such as chip manufacturers. One of our big positions is TSMC, which we continue to like. All AI roads lead to TSMC."