It appears that investors can see opportunities to make money in artificial intelligence and other technology, but the disruptions also give them cause for concern.

A survey by HSBC of 200 high net worth individuals in Singapore and Hong Kong finds that 44 per cent of them expect to find big investment opportunities this year in AI and other tech. On the flipside, almost half (47 per cent) see tech disruptions as a prominent investment risk.

The findings come from the HSBC Private Wealth Market Pulse Survey. 

Geopolitical developments are cited as a major megatrend causing divided sentiment amongst HNW investors, with 22 per cent of those polled seeing them as investment opportunities and 27 per cent seeing them as a risk. 

An overwhelming majority – 92 per cent – are sticking to a neutral/positive outlook for Asia's economic prospects in 2025.

More than half (55 per cent) of respondents forecast at least a 5 to 10 per cent increment in the S&P 500, Hang Seng Index and Straits Times Index by the end of 2025.

“These findings come at a period when investors are seeking timely and reliable insights to help them cut through the market noise and navigate unpredictability in global financial markets,” Lavanya Chari, head of wealth and premier solutions, HSBC said.

AI’s earnings impact
The survey also explores perceptions of AI's impact on corporate earnings. While nearly 40 per cent of respondents believe AI is an overhyped profit driver, 31 per cent think it will enhance corporate efficiency despite increased costs. Additionally, 24 per cent consider AI a significant contributor to earnings growth.

Some measure of how the AI story can roil markets came in late January when revelations about China’s Deepseek open-AI App, which allegedly cost a fraction of its US peers to develop, came out. The development slammed shares of “Magnificent Seven” Big Techs such as Nvidia and Microsoft.

Strong and stable
Amid the backdrop of global uncertainties, two-thirds of investors gravitate towards more stable income streams and investment options, with 37 per cent of them citing fixed income as their top long-term asset class of choice in the next decade, whereas 30 per cent choose foreign currencies and commodities for their long-term portfolios, the HSBC survey found.

Fifteen per cent of HNW investors think alternative investments offer the best long-term opportunities.

Notwithstanding uncertainties, 43 per cent of respondents plan to find the best long-term opportunities in North America over the next decade, followed by 28 per cent naming Asia as their second most favourable investment.

Investors seem to prefer the "stay invested" approach, with only 11 per cent choosing to hold cash.