Growth areas standing out beyond artificial intelligence in Asian markets
According to Manishi Raychaudhuri's analysis, growth and returns in the Asian market are not solely reliant on the artificial intelligence sector; traditional sectors such as finance, energy, defense, infrastructure, and green technology are also forming a strong wave of investment in the region.
While concerns regarding the artificial intelligence-driven technology euphoria in Asian markets are growing, some of the strongest returns in the region are taking shape outside of this popularity. While the technology sector accounts for six of the 15 top-performing market sectors in 2026, the remaining nine sectors are based on fields such as finance, energy, and industrials.
Defense and Infrastructure Investments
With the escalation of global military tensions, defense spending has become a major investment engine worldwide. In June 2025, NATO members pledged to increase their annual defense spending to 5 percent of gross domestic product by 2035. Defense manufacturers in Asia aim to capture a share of this global boom thanks to capacity constraints and delivery time advantages in the West. According to data from the Stockholm International Peace Research Institute, South Korea supplied 8.6 percent of the weapons imported by European NATO members in the 2021-2025 period.
Additionally, McKinsey projects that global infrastructure investments will reach $106 trillion by 2040, with approximately 65 percent of this occurring in Asia.
Green Energy and Assessment
The global shift toward energy independence benefits Asia, a leader in clean energy technologies. Persistently high crude oil prices are driving consumers and governments toward renewable energy sources. While Chinese electric vehicle manufacturers BYD and Geely generate 43 percent and 23 percent of their revenues from abroad respectively, battery giant CATL carries 34 percent of its revenue overseas.
Assessment: Pivoting from artificial intelligence to heavy industry and state-backed defense sectors does not eliminate risks; it merely replaces technology valuation euphoria with more traditional perils such as bureaucratic delays, cost overruns, and price wars.