HSBC is increasing its equity exposure following the technology sell-off, while a reported 11-stock Buy list attributed to the bank spans cloud computing, semiconductor equipment, power infrastructure and financial services.
Reuters reported that HSBC was using the correction to add equity exposure, particularly in U.S. and Asian technology stocks. That supports the bank’s broader buy-the-dip position.
“DON’T WASTE A GOOD SELL-OFF”
The 11-Stock List
The 11-stock Buy list brings together companies across several parts of the investment cycle:
| Company | Ticker | Main business exposure |
|---|---|---|
| Alphabet | GOOGL | Digital platforms, cloud computing and AI |
| Applied Materials | AMAT | Semiconductor manufacturing equipment |
| Baker Hughes | BKR | Energy technology and industrial equipment |
| Bloom Energy | BE | On-site electricity generation using fuel cells |
| Citigroup | C | Banking and financial services |
| Freeport-McMoRan | FCX | Copper and other metals |
| GE Vernova | GEV | Power generation and electrification equipment |
| NextEra Energy | NEE | Utilities and energy generation |
| Oracle | ORCL | Enterprise software and cloud infrastructure |
| Sempra | SRE | Utilities and energy infrastructure |
| Vertiv | VRT | Data-center power and cooling systems |
The composition suggests exposure to both computing demand and the physical infrastructure required to support it. Citigroup also broadens the selection beyond the AI and power themes.
AI Infrastructure Extends Beyond Chipmakers
Alphabet and Oracle provide exposure to cloud computing and the infrastructure used to run AI workloads. Applied Materials operates further upstream, supplying equipment used to manufacture semiconductors.
Vertiv, meanwhile, serves the power and cooling requirements of data centers. Together, these businesses cover distinct stages of the computing supply chain rather than representing one uniform technology trade.
The Crypto Basic recently covered Alphabet’s expansion of its specialized AI computing systems, highlighting the continued development of hardware for demanding AI workloads.
Power and Industrial Exposure Feature Prominently
Bloom Energy, GE Vernova, NextEra Energy and Sempra give the reported selection substantial exposure to electricity generation and infrastructure. Freeport-McMoRan adds copper exposure, while Baker Hughes brings energy technology and industrial equipment.
These businesses have different earnings drivers. Their inclusion does not establish that each company has the same exposure to data-center spending or would benefit equally from an AI investment recovery.
HSBC’s interest in utilities has separate support. An October 22 research summary reported that the bank initiated coverage of 27 utility stocks, assigning 17 Buy ratings while maintaining its existing Buy rating on NextEra. Sempra and NextEra were among its preferred names.
Earnings and Cash Flow Remain Important
Lower share prices can improve entry valuations, but the investment case still depends on earnings, cash generation, and project execution.
Bloom Energy illustrates that distinction. The Crypto Basic reported that Bloom shares fell despite an earnings beat and higher guidance, as its third-quarter results also included negative operating cash flow.
HSBC’s increase in equity exposure represents a more constructive stance after the correction. Whether the companies in the reported list deliver a sustained recovery will depend on business performance as well as improving market sentiment.