While chipmakers such as Nvidia have dominated the AI rally so far, HSBC, one of the world's largest banking groups, said that the current AI cycle has produced an uneven pattern of growth, with AI-related investment surging while spending in many non-tech sectors remains comparatively weak.
On South Korean bourse, Samsung Electronics and SK hynix recently accounted for 51.5 percent of the KOSPI200 index, up from 38.7 percent at the start of the year, while the two companies contributed 90.8 percent of the increase in KOSPI earnings estimates through April, according to Meritz Securities.
Yet the market's heavy reliance on semiconductor stocks was also on display Thursday. The KOSPI tumbled 5.54 percent after concerns over chip-sector earnings triggered a global selloff in semiconductor shares. Samsung Electronics fell 6.40 percent and SK hynix dropped 9.92 percent, highlighting how closely market performance remains tied to a handful of AI-related companies.
That imbalance is one reason the bank expects the next phase of the boom to be defined by what it calls "broadening out." As investment in AI infrastructure continues to grow, HSBC expects the benefits of AI to spread beyond technology companies and across borders, creating opportunities in non-tech sectors and emerging markets.
Under its base-case scenario, the bank expects AI-driven growth to become more broadly distributed across industries and regions while U.S. economic growth remains around 2 percent.
The bank said strong corporate profits driven by the AI boom are helping markets look past geopolitical tensions and supply-side shocks. The bank described the current environment as one in which "markets and economists describe different worlds," noting that markets have largely shaken off geopolitical concerns despite a complicated macroeconomic backdrop of trade tensions, supply-chain disruptions and geopolitical uncertainty.
As spillovers from the AI capital-expenditure boom become more apparent, HSBC expects strong profit growth to hold and broaden beyond borders into non-tech sectors. The bank said emerging markets could be well positioned to benefit from that trend.
The report also highlights opportunities outside the United States. HSBC said emerging markets may benefit from expanding AI supply chains and manufacturing investment, while non-U.S. equity markets could gain as AI-driven growth becomes less concentrated in a handful of American technology companies.
The bank also urged investors to "diversify the diversifiers," arguing that opportunities are no longer limited to a narrow group of AI-related stocks. The bank said higher bond yields are creating new income opportunities across fixed-income assets and defensive equity sectors.
The report comes as investors question whether the AI-driven rally has become overheated. HSBC acknowledged concerns over elevated valuations and the market's reliance on a small number of technology companies.
Still, the bank said strong corporate profits continue to support markets despite a complicated macroeconomic backdrop, although periodic volatility remains possible amid geopolitical tensions and supply-side shocks.
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