Last yr, the highest shares amongst traders had been dubbed the “Magnificent Seven,” which included Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. However, for these on the lookout for alternate options, UBS has up to date its checklist of probably the most promising tech shares in Asia.
Alternatives to the “Magnificent Seven”
According to UBS, these new shares, dubbed the “Super 8,” dominate their respective market segments and commerce at decrease valuations. These Asian shares are anticipated to “narrow the performance gap with the Magnificent 7 and outperform the rest of Asia over the next 12 months.” UBS analysts spotlight their sturdy earnings development and enticing valuations in comparison with their world friends.
Since its inception in February, the UBS Super 8 has gained 8.3%, outperforming the benchmark MSCI Asia-Pacific index which gained 6.7%.
UBS Super 8 List
Below is an inventory of UBS Super 8 shares and their development potential, primarily based on FactSet consensus value targets:
| Name | Ticker | Upward Potential (%) |
|---|---|---|
| ASMPT | 522 – HK | 9.3% |
| HON HAI | 2317 – TW | 12.8% |
| INFOSYS | 500209 – IN | -5.8% |
| LENOVO | 992 – HK | 16.8% |
| SAMSUNG ELECTRONICS | 005930 – KR | 25.6% |
| TENCENT | 700 – HK | 19.5% |
| TOKYO ELECTRON | 8035 – JP | 17.4% |
| TAIWAN SEMICONDUCTOR MANUFACTURING CO | 2330 – TW | 9.0% |
Source: UBS, FactSet information as of July 15
Tencent: A Safe Bet
Chinese tech big Tencent is among the newest additions to UBS’s checklist, famous for its “stable competitive environment, high earnings visibility, reasonable valuation and proactive capital management.”
UBS considers Tencent its high decide in China’s web sector. Tencent is anticipated to profit from a restoration in gaming income development in China and improved efficiency in launching new video games. In addition, the mixing of synthetic intelligence (AI) options into WeChat ought to speed up its monetization and assist its development.
Tencent shares, that are listed on the Hong Kong Stock Exchange and as ADRs within the United States, are up 32.9% up to now this yr.
Hon Hai: AI Beneficiary
Taiwan’s Hon Hai Precision Industry, the world’s largest contract electronics producer, is one other notable addition. The firm, often known as Foxconn, is properly positioned to profit from demand for AI servers and smartphone meeting.
The AI server sub-segment is anticipated to develop by over 40% yearly this yr. Furthermore, as Apple’s most important assembler, Hon Hai will profit from the launch of the iPhone 16.
Hon Hai shares are traded on the Taiwan Stock Exchange and as ADRs within the United States. They have been on an upward development, up 107.2% up to now this yr.
Lenovo: Growth with AI
Lenovo has additionally been included within the Super 8 checklist. UBS highlights its potential to develop by offering numerous finish gadgets for AI know-how.
Increased demand for computing energy and new AI options are anticipated to spice up demand for Lenovo gadgets. The launch of AI-powered private computer systems and Microsoft Copilot ought to enhance demand for Lenovo programs within the second half of the yr.
Finally, Lenovo shares are listed on the Hong Kong Stock Exchange and as ADRs within the United States. Although they’ve fallen barely, they’ve gained 0.4% up to now this yr.
