Mark Mobius, a veteran emerging markets investor, believes that Alibaba and Tencent are important stocks for portfolios investing in developing economies. Despite recent volatility, Mobius believes these Chinese technology giants are still profitable. Alibaba's plans to split into six business groups and the potential spin-offs are positive for the company. Mobius also believes that China will make significant advancements in chip capabilities, focusing on surpassing the US in semiconductors. He prefers investing in lesser-known companies involved in the semiconductor sector due to their agility and profitability. However, he acknowledges the geopolitical risks and highlights that these companies have the ability to quickly relocate if necessary.
