From AI hardware to internet giants: Is it time to revisit Hang Seng Tech? (3 May 2026)

Dear All, The Hang Seng Tech Index (HST) has fallen sharply 27% From its multi-year high of 6,715 (2 October 2025) 4,871 Till 30 April 2026. Remarkably, it now just sits Up 148 points from its pre-DeepSeek level (4,723 on 28 January 2025). This raises an important question: Is capital about to turn from crowded AI hardware trades into undiscovered internet giants? Both CGSI and UBS think this is increasingly likely. Here are the details of the investment case. The Investment Case (7 Key Points) 1) Poor performance can create an entry point HST has lagged behind both regional competitors and A-shares, mainly due to its Limited performance of AI hardware rally. Previous 1 month:ChinaNext: +11.9%Star50: +14.8% HST: +2.8% If we have to compare year-to-date (YTD) performance (see). Figure.1), HST’s underperformance is severe, all other indices are down 11% with positive YTD performance…