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BNP Paribas Wealth Management Bullish on Semiconductors and European Banks
Finance · Major Banks · economic_daily · 2026-09-01
BNP Paribas Wealth Management remains optimistic about semiconductor growth driven by AI infrastructure spending while upgrading European banks to overweight.
What Happened
AI Investment Outlook: BNP Paribas Wealth Management notes that AI infrastructure spending continues to drive earnings growth in the US, with momentum expected to broaden in the second half of the year. The firm remains bullish on semiconductors, memory, and power infrastructure, projecting that supply-demand imbalances in these sectors will persist through 2027.
European Market Strategy: With European equities offering more attractive valuations and lower concentration compared to US markets, BNP Paribas has upgraded its view on European stocks to neutral. Specifically, the firm has moved European banks to an overweight rating, citing robust operational environments and strong trading performance as key drivers for outperformance.
China Market Outlook: Despite recent market consolidation, BNP Paribas maintains a positive long-term outlook for A-shares, supported by state-backed capital inflows and corporate buybacks. The firm highlights that Chinese semiconductor leaders now offer attractive entry points following recent volatility, while insurance stocks are expected to outperform major banks due to capital market reforms.
Sector Allocation: Beyond technology, the firm recommends exposure to industrial, utility, and materials sectors that benefit from hyperscale cloud capital expenditures. Additionally, the biotechnology and medical sectors are regaining momentum as policy uncertainty eases, prompting a recommendation for a diversified portfolio approach to manage market volatility.