TAIPEI (Taiwan News) — Taiwan’s Foxconn and Taiwan Semiconductor Manufacturing Co. (TSMC) were included in an updated list of “Asian Super 8” shares exhibiting strong growth potential in an investment memo issued by Swiss investment bank UBS on July 11.

The category is a response to the term “Magnificent 7” coined by analyst Michael O'Rourke, who used it to describe legions of investors piling into leading U.S. technology stocks such as Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. 

While these U.S. stocks have earned outsized gains in past years, further growth may not be possible, sending investors to look elsewhere such as the UBS “Super 8,” which includes Foxconn, TSMC, ASMPT, Infosys, Lenovo, Samsung Electronics, Tencent, and Tokyo Electron Ltd.

An index fund based on “Super 8” gained 8.3% since its inception in February, beating the 6.7% return of the benchmark MSCI Asia Pacific Index. UBS analysts expect "Super 8" to narrow the performance gap with the “Magnificent 7” and outperform other Asian shares in the next 12 months, per UDN.

As for Foxconn, UBS analysts said the company will benefit from AI, especially the assembly of AI servers, which will increase its market share to over 40% this year. Furthermore, as Apple's main assembler, Foxconn is well-positioned to benefit from the iPhone 16 launch.

As for TSMC, it continued to earn praise from UBS as the world's largest foundry. Japanese semiconductor equipment company Tokyo Electron also made the list for its strong client list, which includes many of the top IT companies in the world.

Chinese technology giant Tencent made this list for its leading position in China’s internet gaming sector, with new launches performing better than expected. Furthermore, new AI features could accelerate monetization and provide more growth momentum.

And Lenovo, a company that just entered the “Super 8,” is expected to benefit from increased requirements for AI computing power, fueling demand for new PCs and notebooks. Analysts expect the launch of Microsoft's Copilot to boost demand for Lenovo's AI PCs starting in the second half of this year.