BANGKOK, Thailand – Thailand’s stock market could climb further in the third quarter of 2026, with Krungthai XSpring Securities (KTX) setting a target of 1,705 points for the SET Index, representing potential upside of around 7% from current levels. KTX senior investment strategist Nattawut Chantanachulapong said Thailand’s improving economic fundamentals, including stronger exports, rising listed company profits and renewed foreign capital inflows, are expected to support a recovery in the Thai stock market.
He said easing geopolitical tensions could weaken the US dollar and encourage foreign investors to return to Asian markets, while regional growth continues to benefit from artificial intelligence (AI) and electronics industries, where Thailand remains an important manufacturing and export base.
KTX continues to recommend ADVANC, GULF and WHA, while adding KBANK and ASK as investment picks to benefit from growing opportunities in AI infrastructure and data centre expansion.
The brokerage maintains a preference for Asian markets over the US, despite easing inflation pressures. KTX expects the US Federal Reserve may raise interest rates only zero to one time this year, as slowing domestic consumption and high living costs increase pressure on the Fed to support economic growth rather than focus solely on inflation control.
However, investors should monitor global financial liquidity in the third quarter, particularly government fundraising and investment by major technology companies. KTX warned that increased competition for capital could create a “crowding out” effect, causing some money to move away from risk assets. KTX advised investors to consider both short-term and long-term factors. While geopolitical risks, including tensions in the Middle East, may create short-term market volatility, longer-term energy risks are expected to ease. The firm expects oil prices to remain relatively stable at around US$70–80 per barrel, supported by Saudi Arabia reducing prices for Asian markets, OPEC+ gradually increasing production and the possibility of Iranian oil returning to global markets.
AI Investment Drives Asia Market Outlook
KTX foreign market analyst Suphapol Tangwichian said global investment flows are beginning to rotate back into Asian markets as major US technology companies accelerate AI investment.
The spending boom is benefiting upstream industries, particularly semiconductor manufacturers in Asia, showing that AI-related investment remains a major market driver for the third quarter.
Although some sectors, including healthcare, industrials and financials, have recently attracted capital through sector rotation, KTX expects technology stocks could regain attention when major tech companies announce earnings results later this month, supported by continued growth in cloud and AI businesses. KTX recommends a selective-buy strategy focused on companies with strong earnings growth potential, AI exposure and reasonable valuations.
Recommended investments include:
- TAIWAN19, a depositary receipt (DR) linked to the Yuanta/P-shares Taiwan Top50 ETF, due to Taiwan’s key role in the global AI supply chain, particularly through semiconductor giant TSMC.
- NIKKEI80, a DR tracking Japan’s Nikkei 225 Index, as Japan’s technology, electronics and semiconductor sectors continue expanding due to global AI infrastructure investment.
Japan and South Korea Expand AI Investment
Peerapol Surattanawanich, investment strategist at XSpring Asset Management (XSpring AM), said Japan and South Korea are committing significant investments to AI industries over the next five to 10 years to maintain competitiveness. Japan is continuing to strengthen its semiconductor sector through investment in advanced chip manufacturing facilities, technology development and electronic materials, giving the country an advantage across the semiconductor supply chain.
XSpring AM recommends the X-JPTOPTECH fund, which invests in 20 leading Japanese technology companies covering semiconductors, electronics and automation industries benefiting directly from AI growth. The fund has delivered returns of around 12% over the past month and approximately 35.3% year-to-date.
Energy Infrastructure Becomes Key AI Investment Theme
Analysts also highlighted that AI growth depends heavily on energy infrastructure, as data centres and AI computing systems require increasing amounts of electricity. Between 2026 and 2030, the United States is expected to invest around US$1.3 trillion in energy and utility infrastructure to support rising demand. XSpring AM recommends the X-VOLT fund, which invests in companies across the electricity supply chain, including power networks and energy infrastructure, as a long-term beneficiary of AI expansion. The fund has generated approximately 35.4% year-to-date returns, according to XSpring AM.
