HSBC Private Bank Maintains Bullish Stance on US Equities and Dollar

Patrick Ho, chief investment officer for North Asia at HSBC Private Bank and Premier Wealth, characterizes the recent turbulence in the semiconductor sector as a portfolio rotation rather than a mass exit. While major players like Samsung, SK Hynix, Intel, and Micron have seen significant declines—each dropping roughly one-third over the past month—Ho argues that the underlying structural AI theme remains intact. The Morningstar Global Semiconductor Index has retreated 17 percent from its June peak, yet investor interest is merely shifting toward software firms, where the Morningstar Global Software - App Index has rebounded 16 percent from its own June lows.

HSBC is placing heavy emphasis on the infrastructure supporting the AI revolution. Projections suggest that global AI capital expenditure will climb from under $400 billion in 2025 to exceed $1 trillion by 2028. Ho identifies Asia as the emerging epicenter for this expansion, with regional data center capacity expected to double by 2030. This build-out informs the bank's high-conviction focus on the data center supply chain, ranging from cooling systems and power generation to specialized semiconductor equipment. Within this framework, Ho maintains a neutral stance on fixed-income duration while prioritizing high-quality investment-grade credit.