UBS reveals its most and least preferred Asian tech stocks — giving 2 over 100% upside

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'Bottom up, we do not believe the Tech outlook has dramatically changed,' the bank's analysts say.

Asia's tech stocks have taken a hit from the recent tech sell-off, but UBS sees promise in the sector, naming its most — and least — preferred stocks in it. "Bottom up, we do not believe the Tech outlook has dramatically changed," the investment bank's analysts led by Nicolas Gaudois wrote in an Aug. 6 research note. "The 2Q24 results season showed some delay in the recovery for auto / industrial semis & PCs more in line.

Their comments follow the 17% average decline in Asia-Pacific tech stocks in the four weeks up till the date of the note, underperforming the MSCI APAC Equity index by 13%, the analysts noted. Year-to-date, the sector was also down 13% on average relative to the broader index, as at Aug. 6, the analysts added. UBS' analysts expects AI to remain the "overarching driver" in the tech sector.

 

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