Global Tech: 2026 May Signal the End of the American Monopoly

Toward a New Global Balance

In one year, AI has transformed the structure of the financial markets. The American technology and communication sectors now account for nearly a quarter of the world's stock market capitalization. This growth reflects exceptional profits and the enthusiasm of investors regarding the revenue prospects generated by AI. However, this concentration also raises questions. Recent price fluctuations indicate that the market is questioning the future returns of the massive investments made by sector giants and the circularity of their financing.

In its 2026 Investment Outlook, HSBC AM highlights that the particularly uniform performance observed this year across major regions might extend to the tech sector itself. In other words, the dominance of American players may no longer be a given. Asian innovation, particularly from China, is now playing a decisive role: the example of DeepSeek, whose AI models triggered a volatility spike earlier this year, illustrates the capability of non-American players to influence global markets.

Toward a New Global Balance

HSBC AM anticipates that the Chinese and Indian tech ecosystem could become just as profitable as Silicon Valley, while presenting a lower concentration of risks. Investors would then benefit from more balanced growth drivers and less stretched valuations. This convergence is not limited to technology. AI is rapidly spreading to other sectors: utilities, infrastructure, healthcare, and commodities. This cross-industry expansion paves the way for a broader sectoral rebalancing.

For investors, this underlying trend signifies a gradual transition from a market dominated by a few large-cap American companies to a more geographically diversified landscape. This redistribution could reduce the vulnerability of portfolios to sudden corrections in a small number of stocks and encourage more international allocation.