Some investors, frustrated by lackluster returns in an uncertain market, have been banging the drum on “bargain” technology stocks. Others point to the long-term potential of overseas markets as an alternative to domestic underperformance.
Many investors clearly think the right move is to hunker down in traditional domestic blue-chips until the dust settles. But with a lot of stocks in China surging last week on renewed optimism, now may be the time to consider a high-risk, high-reward investment in the region.Alibaba Challenges for Asia tech giant Alibaba Group Holding BABA, -4.35% actually predate the war in Ukraine and sanctions talk, and are instead rooted in a long-term dispute between U.S. regulators and China.
Baidu If you’re looking for a rebound stock, Baidu Inc. BIDU, -1.58% is perhaps the best there is right now. Shares were trading for roughly $100 or so a year ago, and have surged more than 40% to the $140s at present thanks to a stark shift in sentiment on the China tech giant. DiDi The worst-performing IPO of 2021 by some measures, DiDi Global Inc. DIDI, +1.71% went public at $14 and briefly rose to $18 a share before crashing to about $5 by the end of the year. Things only got worse in early 2022, with the stock plumbing a new low of just under $2 a share in March — before a massive 50% rise in the stock lately sparked by the return of investor optimism.
Taiwan Semiconductor Taiwan Semiconductor Manufacturing Co. TSM, +0.19% has been under pressure for a host of reasons. To begin with, the supply-chain disruptions of the pandemic have lingered on. And furthermore, there is general talk in Europe and America about the importance of onshoring some semiconductor operations — including a prominent mention in President Biden’s recent State of the Union address about a domestic foundry being built by Intel INTC, -0.13% in Ohio.