Timothy Moe, Goldman Sachs Group's head of Asia Pacific equity strategy, said AI-related stocks remain appealing despite rising government bond yields.

Moe said, "We are firmly in the 'higher for longer' camp." He noted that hyperscale cloud companies are expected to spend about $800 billion this year, with investment potentially reaching around $1.2 trillion by 2027, which would serve as an important signal for demand across Asia's AI hardware supply chain.

Moe said Asia's "extremely low" valuation levels also provide additional support for related stocks. Asia's overall stock market currently trades at a price-to-earnings ratio of about 10 times, sitting at the lower end of its historical valuation range. He added that corporate earnings growth will also provide a buffer against the high interest rate environment.

For the remainder of this year, Moe expects the market may continue a "somewhat bumpy" trajectory as the U.S. midterm elections approach, with high energy prices and geopolitical risks adding pressure to the market. However, after this phase ends, he believes the market could see a rally before the end of the year, driven by corporate earnings growth and valuation recovery.