Macquarie has named several Asian companies as its top picks for 2025 and expects their share prices to rise between 50% and more than 80%. The selection covers a variety of industries including technology, automobiles, defense and electric utilities, reflecting the investment bank’s positive view of these industries in the coming year. The investment bank shortlisted 25 companies with strong market positions, clear growth catalysts, solid financial fundamentals and the potential to “thrive in the year ahead.” The table below lists six stocks with the greatest upside potential, with four of the six stocks also trading in the United States. stocks, up to 85%. The utility, which operates natural gas, solar and coal power stations as well as data centers for information technology companies in Southeast Asia, is expected to be a major beneficiary of the growing trend in artificial intelligence. AI servers use significantly more electricity than traditional computers and are expected to drive power generation demand. There’s also momentum behind the stock, which is up more than 50% year to date. Kia Macquarie is also bullish on Korean automaker Kia, predicting the stock will rise 80% in the next 12 months. The investment bank said that in addition to leading the electric vehicle trend, Kia has “resilient business prospects” and even its gasoline-powered vehicle manufacturing can “generate profitability above the industry average.” Meanwhile, U.S. and European automakers are currently restructuring much of their operations and having to contend with billions of dollars in losses as global sales slow. Tokyo Electron, a Japanese semiconductor equipment maker, stands out with Macquarie’s forecast of 67% upside potential. Analysts at the bank said Tokyo Electronics is well-positioned to benefit from growing demand for artificial intelligence chip manufacturing. The company’s shares have fallen sharply this year amid concerns that U.S. export controls would limit the company’s growth in China. SK Hynix South Korean memory chip maker SK Hynix is another stock expected to rise 50% on growing demand for AI storage chips. The bank said the company’s position in the semiconductor industry appears particularly strong as artificial intelligence applications continue to drive demand for memory chips. Currently Nvidia is the only AI memory chip manufacturer. South Korean defense manufacturer Hanwha Aerospace is expected to achieve a 55% return, according to Macquarie. The investment bank is particularly bullish on the company due to its “strong sales in Europe” and “strong potential to expand sales in the Middle East and Southeast Asia,” while also noting that it maintains “the highest profitability among South Korean defense peers.” Many European governments have pledged to increase defense spending during the war in Ukraine. Meituan Dianping Chinese technology and food delivery company Meituan Dianping is also one of Macquarie’s top picks for 2025. Macquarie’s positive outlook is underpinned by the company’s strong position in China’s digital economy and local services market. Any future stimulus measures announced by the Chinese government could also benefit the stock, the bank said.
