Artificial intelligence ( AI ) adoption, energy independence and resilient earnings growth are set to sustain investor optimism into the final quarter of 2026, with the opportunity set widening beyond US mega-cap companies to more sectors and regions, according to a recent outlook report.

The global economy and corporate earnings have remained more resilient than many expected, despite market stress from geopolitical conflicts, oil price volatility and concerns about inflation and interest rates, finds HSBC Private Bank’s Q4 2026 Investment Outlook: AI-celeration report.

The bank, as the report states, believes that stronger earnings, active commercial and workforce adaptations and ongoing investment in innovation and infrastructure are helping economies offset these risks.

In the report, the bank sets out its four investment priorities for Q4:

• Focus on AI monetization: AI adoption and investment continue to accelerate, but the bank prefers areas where returns are visible and sustainable, particularly across cloud, semiconductors and AI-enabled applications.
• Benefit from governments’ focus on security and energy independence: Geopolitical tensions, supply-chain interruptions and surging electricity demand are driving investment in cybersecurity, defence, energy supply, critical materials and climate mitigation sectors.
• Build portfolio resilience with income and multi-asset strategies: Income from quality bonds, infrastructure and dividends can help stabilize returns, while hedge funds, private markets and gold can further diversify and help temper volatility.
• Tap into Asia’s innovation and income: Semiconductor, robotics and advanced manufacturing firms in Asia are clear beneficiaries of the global AI supply chain and local innovation, while companies with strong shareholder returns and high-quality credit add income to help balance exposure.

Holding a constructive yet selective multi-asset stance, the bank has a preference for global equities, quality bonds and alternative investments. It maintains its overweight position in global equities, favouring the US, Japan, mainland China, Hong Kong, Singapore and South Korea, complemented by exposure beyond technology.

As AI monetization improves, the gains will spread to financials, industrials, materials and energy. While Asian markets stand to benefit from global chip demand, a broader range of markets may also see productivity gains from wider AI adoption.

As well, there are significant opportunities in fixed income, according to the bank, an area where elevated real yields and quality income can help stabilize portfolios. In currencies and commodities, the US dollar is expected to stay broadly supported, and the bank retains a bullish long-term view on gold.

“Investors are navigating multiple sources of uncertainty, but broadening earnings momentum and resilient economic activity continue to support a risk-on environment,” says Willem Sels, the bank’s global chief investment officer. “As AI progresses from novelty towards monetization, we’re deploying multi-asset portfolio strategies to capture opportunities from structural growth trends, while adding bonds and alternative assets to help cushion ongoing volatility.”

Desmond Kuang, the bank’s chief investment officer for Asia, adds: “Asia remains central to the accelerating AI development and the global supply chain.”

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