HSBC reveals 11 US stocks to watch ahead of Q4 2025 earnings, driven by AI, cloud computing, and long-term growth trends.
As artificial intelligence reshapes the economy, investors are hunting for companies positioned to benefit from the massive build-out of AI and cloud infrastructure. HSBC analysts highlighted 11 high-conviction U.S. stocks tied to that theme — chosen for durable business strength, reliable cash generation, and exposure to long-term AI and cloud demand. Here are the picks, the themes behind them, and the risks to weigh.
The Big Theme: AI and Cloud Infrastructure Spending
HSBC analyst Nicole Inui framed the bank’s focus around earnings stability into 2026, margin pressure, and the enormous capital spending tied to AI infrastructure. The tailwind is hard to overstate: global data-center infrastructure investment is projected to reach nearly $585 billion by 2032, supporting sustained growth for companies across the AI supply chain — from cloud software to the energy that powers the servers.
HSBC’s 11 High-Conviction Picks by Sector
| Sector | Companies |
| AI & Cloud | Oracle, Salesforce |
| Energy Infrastructure | Bloom Energy |
| Healthcare & Life Sciences | AbbVie, Johnson & Johnson, Thermo Fisher Scientific |
| Consumer & Cyclical | Walmart, Monster Beverage, Royal Caribbean |
| Financials & Travel | PNC Financial Services, Booking Holdings |
Why These Names Stand Out
Oracle is a headline pick: it reported fiscal second-quarter revenue of $16.1 billion (up 14% year over year), with cloud-infrastructure revenue surging 68% to $4.1 billion and a large contract backlog underpinning multi-year growth. Salesforce earns its spot for unifying customer data, sales tools, and enterprise platforms into a single ecosystem.
Bloom Energy represents the often-overlooked energy angle — supplying power solutions for AI data centers as electricity demand from operators climbs. In healthcare, AbbVie (a strong patent portfolio), Johnson & Johnson (immunology and oncology progress), and Thermo Fisher (lab tools and supplies) offer defensive, steady earnings. Rounding out the list, consumer names Walmart, Monster Beverage, and Royal Caribbean bring brand strength and market-share gains, while PNC Financial and Booking Holdings add financial-sector and travel-recovery exposure.
The Key Risks
The investment case rests on long-term earnings strength, not daily price moves — and short-term volatility is real. The biggest risk HSBC flags is margin pressure, particularly for technology firms, where investor confidence depends on consistent earnings results rather than AI enthusiasm alone. Heavy capital spending on AI infrastructure can also weigh on near-term profitability before it pays off.
Frequently Asked Questions
What connects these 11 stocks?
Most are tied directly or indirectly to the AI and cloud build-out — either as providers of the technology and energy, or as resilient businesses with durable earnings that can weather market swings.
Why include energy and healthcare in an AI list?
AI data centers need enormous power (the energy angle, e.g. Bloom Energy), while healthcare and consumer names add defensive balance against the volatility of pure technology bets.
The Bottom Line
HSBC’s list is less about any single stock and more about a durable theme: the multi-year, $500-billion-plus investment in AI and cloud infrastructure, and the companies — in tech, energy, healthcare, and beyond — positioned to ride it. For more market analysis, see our Investing coverage.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research or consult a licensed financial advisor before making investment decisions.
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