Coronation Asset Management Ltd., which oversees $47 billion, has trimmed its exposure to chipmakers and increased its allocation to India, as expectations for artificial intelligence stocks have risen to levels that are nearly impossible to beat.\n\nThe firm reduced its positions in TSMC and SK Hynix, redirecting capital toward Indian equities. TSMC fabricates the most advanced chips; SK Hynix dominates high‑bandwidth memory. SK Hynix raised $26.5 billion through a US ADR listing in July 2026, one of the largest foreign listings in American market history.

For existing shareholders, the question shifts from “is demand real” to “is this price rational."\n\nWhy India, and why now: The capital freed up from trimming semiconductor positions isn’t sitting in cash. Coronation has been building exposure to Indian equities, focusing on banks, consumer‑facing companies, and services businesses. India’s economy is driven heavily by domestic consumption rather than export cycles, providing a hedge against global tech demand fluctuations.

The Indian equity market is large and liquid enough to absorb meaningful institutional flows without moving prices against you on the way in.\n\nWhat this means for crypto‑adjacent investors: Coronation’s portfolio shift doesn’t involve any crypto assets, tokens, or blockchain protocols. The AI narrative has been one of the most powerful forces in financial markets. Tokens tied to decentralized compute, AI agent frameworks, and GPU marketplaces have traded in loose correlation with broader AI sentiment.

When a $47 billion fund starts trimming AI exposure because valuations look stretched, that’s a data point worth noting. India also has one of the largest crypto user bases globally, despite a complex regulatory environment that includes a 30% tax on crypto gains and a 1% TDS on transactions.