HSBC Flags 10 Asia 'Forgotten Gems' as 3 AI Stocks Drive Over Half of Index Returns
Updated
Updated · CNBC · May 20
HSBC Flags 10 Asia 'Forgotten Gems' as 3 AI Stocks Drive Over Half of Index Returns
1 articles · Updated · CNBC · May 20
HSBC said more than half of FTSE Asia ex-Japan returns have been driven by just three AI-linked names—TSMC, SK Hynix and Samsung Electronics—raising concentration risk and leaving other growth themes overlooked.
The bank identified 10 Asian "forgotten gems" it says combine high return on equity, market-share gains, profitability and strong dividends, including Hong Kong Exchange, Samyang Foods, PT Telkom, Fuyao Glass, WuXi AppTec and Godrej Properties.
Fuyao Glass stood out for its roughly 70% share of China’s auto-glass market and expanding overseas footprint, which HSBC said supports a longer growth runway and resilient margins.
WuXi AppTec guided for 18%–22% revenue growth in continuing operations in 2026 after CDMO revenue grew 11% in 2025, while HSBC said Godrej Properties should benefit from still-strong premium housing demand in India.
As AI giants consume trillions in capital, where will the next wave of sustainable, non-AI growth emerge from?
Is the market's intense AI focus creating a massive blind spot for truly resilient, profitable companies?