Vietnam and India are the top two Asian bourses with strong growth potential this year, while US artificial intelligence (AI) technology stocks could deliver a return on investment of up to 25%, according to Maybank Securities.
Dan Ives, managing director and global head of technology at Maybank, said AI technology stocks on the Nasdaq exchange could soar 25% this year and next.
These stocks are not affected much by economic conditions in the US and AI-related industries are growing well globally, he said.
The Magnificent Seven stocks in the US could still post high growth rates this year, particularly Nvidia, Apple and Tesla, said Mr Ives.
Apple will become the first company to reach a market capitalisation of US$4 trillion this summer, up from $3.68 trillion currently, followed by Nvidia, he said.
A major driver is AI technology, with 25% of people worldwide accessing AI through Apple devices. Only 4% of companies in the US have begun using AI seriously, potentially boosting Apple's AI business, which is now worth $12 billion. Companies are also expected to invest about $2 trillion in AI over three years, said Mr Ives.
Tesla stock should benefit from Elon Musk's involvement in the Donald Trump administration, according to Maybank. The main risk to tech stocks remains the trade war between the US and China, which could increase business costs. However, this risk has gradually decreased after Trump became more conciliatory with China, he said.
Mr Ives recommends investors have 60-70% US stocks in their portfolios, with 10-15% Chinese stocks, and the remainder alternative investments.
Kitichan Sirisukarcha, director of investment solutions at Maybank Securities (Thailand), recommends overweighting global stocks, mainly in the US, Vietnam and India.
He said the Vietnamese stock market has the opportunity to become a prominent exchange once it is included in the FTSE Emerging Index, upgrading from the original FTSE Frontier, starting in September this year.
The Vietnam bourse's profit growth rate is the strongest in Asia at around 25%, compared with the MSCI ex-Japan average of 11%, while Vietnamese stocks remain relatively cheap, said Mr Kitichan.
The main risk to Vietnam is the depreciation of the dong, which may cause capital outflows, as well as the risk of rising import tariffs from the US, as Vietnam has the third-highest trade surplus with Washington after China and Mexico.
He said listed US companies should continue to grow their profits by 10-12% in 2025-2026, compared with 7-9% in other developed markets.
Maybank Securities (Thailand) recommends asset allocation of 35% in global stocks, 70% of which should be US stocks. Roughly half of the portfolio should be fixed income assets, 10% Thai stocks, and the other 5% alternative assets, said Mr Kitichan.
