DBS Group Research – 20 March 2026

Excerpt from DBS Group Research report

Report Summary

• Singapore tech stocks are still trading at a discount to global peers, despite strong performance and robust AI-driven demand. The sector is supported by a durable multi-year semiconductor upcycle, with continued growth expected from memory, agentic AI, and hyperscaler capex.
• Stocks like UMS, AEM, and Frencken are well-positioned to benefit from this upcycle, while iFAST provides a defensive hedge with its recurring revenue model. Institutional investors have been net buyers of Singapore tech, and the sector continues to attract inflows, supported by government EQDP initiatives and strong earnings guidance.
• Major growth drivers include the AI-driven memory supercycle, rapid adoption of agentic AI, and ongoing hyperscaler data centre investments, all of which increase demand for advanced packaging, testing, and manufacturing infrastructure.
• Valuations for leading Singapore tech names (UMS, AEM, Frencken) remain undemanding, and there is further scope for re-rating as the upcycle continues. The research highlights attractive value and yield plays such as Venture, Valuetronics, and Aztech, as well as digital platform growth in iFAST and Info-Tech.
• DBS’s top picks are UMS, AEM, Frencken, and iFAST, each with strong upside potential based on current forecasts and industry trends.
• AI is a central theme, benefiting both hardware and software players, with structural tailwinds supporting the sector’s outlook through at least 2027.

Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website: https://www.dbs.com.sg/