Since the introduction of ChatGPT in late 2022, artificial intelligence has emerged as a significant influence in global financial markets. Investors have aggressively invested in AI-related stocks, resulting in remarkable surges in the valuations of major companies such as Nvidia, Intel, Samsung, TSMC, and SK Hynix. This unprecedented excitement has, however, led to concentration risks in the market, particularly in Asia. According to a recent note from HSBC, more than half of the returns on the FTSE Asia ex-Japan index can be attributed to just three companies: TSMC, SK Hynix, and Samsung Electronics.
HSBC warned that a rally so heavily concentrated on a few stocks poses risks. “Everybody owns the same stocks,” the bank cautioned, noting that the current fervor surrounding AI is causing “market dislocations” and diverting attention from other growth opportunities.
To highlight investment options beyond the AI sphere, HSBC identified a list of 10 “forgotten gems” in Asia. These companies have demonstrated strong return on equity, gained market share while remaining profitable, and are known for their solid dividend payouts. Included in this list are the Hong Kong Exchange, South Korean food manufacturer Samyang Foods, and Indonesian telecommunications provider PT Telkom.
Notably, HSBC spotlighted Fuyao Glass Industry, recognized as the world’s largest automotive glass manufacturer. The bank’s analysts believe the market is undervaluing Fuyao’s potential for growth and its ability to maintain healthy profit margins. Fuyao commands approximately a 70% share of the Chinese market and is also expanding its footprint internationally, boosted by its manufacturing capabilities in the United States and a diverse product portfolio.
Another entry on the list is WuXi AppTec, a China-based contract research, development, and manufacturing organization (CRDMO). The company reported a revenue growth of 11% in 2025 within its CDMO segment, and analysts foresee further expansion in 2026 due to strong customer demand and increasing global production capacity, particularly in regions like Singapore, the European Union, and the U.S. WuXi AppTec has projected revenue growth of 18%–22% for its continued operations in 2026.
Additionally, HSBC recognized Godrej Properties, an Indian real estate developer. Despite faced pressures from a general slowdown in market appetite for real estate stocks in India, Godrej Properties continues to see strong demand for its premium offerings. The company stands out with a presence across multiple regions, a solid balance sheet, and extensive experience in handling large projects, positioning it well for market share gains. Analysts expect its robust project deliveries to translate into higher profitability, improved collections, and strong cash flows.
