Since the launch of ChatGPT in late 2022, the surge in AI-related stocks has significantly influenced global markets, particularly benefiting companies like Nvidia, Intel, Samsung, TSMC, and SK Hynix. However, HSBC has warned of concentration risk, noting that over half of the returns on the FTSE Asia ex-Japan index are driven by just TSMC, SK Hynix, and Samsung Electronics.
This concentration could lead to market dislocations and distract from other growth opportunities. To address this, HSBC has highlighted ten 'forgotten gems' in Asia, which include companies like Hong Kong Exchange, Samyang Foods, and PT Telkom.
Notably, Fuyao Glass Industry, the largest automotive glass manufacturer, is seen as undervalued despite holding a 70% market share in China and expanding internationally. WuXi AppTec, a contract research organization, is projected to see significant revenue growth due to rising demand and capacity expansion.
Additionally, Godrej Properties is positioned well in the Indian real estate market, despite broader pressures, due to its strong brand and operational capabilities. HSBC's insights suggest that these companies could offer substantial returns as they are currently overlooked in favor of AI stocks