Emerging economies are poised for significant growth, fueled by innovative tech companies independent of Western influence. Amid this, investors could scoop up shares of fundamentally stable emerging market tech stocks, Infosys Limited (INFY), Sea Limited (SE), and NetEase, Inc. (NTES).
With President Trump's proposed tariffs coming along soon, investors looking to make some investments without the usual uncertainty linked to them could look into these emerging market tech stocks, which are less exposed to U.S. policy risks.
Emerging economies are poised for success in the coming years owing to a few main factors. With the massive popularity of AI, many companies in these economies are key in the supply chain for AI chips. Moreover, the Fed cutting rates down has been an overall positive for these economies, easing their borrowing from the West.
Once only known for hardware assembly or outsourcing of repetitive data entry, the emerging market tech firms are now rivaling the once dominant Western ones. The recent DeepSeek fiasco made the world understand how advanced emerging economies are getting to match the AI dominance of U.S. firms.
In line with these advancements, S&P Global predicts that emerging markets will drive 65% of the global economic growth over the next decade, with an average GDP growth rate of 4.06% through 2035, compared to just 1.59% for advanced economies. Countries like China, India, Vietnam, and the Philippines are expected to be the main drivers for this growth.
Considering these positive trends, let us dive deep into the fundamentals of three emerging market tech firms that are expanding digital frontiers, starting with #3.
Stock #3: Infosys Limited (INFY)
Based in Bengaluru, India, INFY provides consulting, technology, outsourcing, and next-generation digital services. The company's offerings include digital marketing and digital workplace, digital commerce, digital experience and interactions, metaverse, data analytics and AI, applied AI, and generative AI.
On February 18, 2025, INFY announced a strategic, long-term collaboration with Deutsche Lufthansa AG (LHA.DE) and Lufthansa Systems GmbH, aimed at accelerating digital transformation and driving innovation in the aviation industry. The collaboration comes with the opening of a new Global Capability Center (GCC) in Bengaluru.
By leveraging the collaboration and the launch of its new Infosys Cobalt Airline Cloud, the company could revolutionize passenger experiences, enhance operational efficiency, and facilitate the aviation industry’s sustainability initiatives. This move could enhance the company’s position in the aviation industry.
On January 30, 2025, INFY’s wholly owned subsidiary, Infosys Finacle, announced the launch of the Finacle Asset Liability Management Solution. The liquidity and interest rate risk management solution will provide banks with an enterprise-wide view of all on-and-off balance sheet exposures.
Armed with advanced data analytics and AI-infused capabilities, the new release is aimed at helping financial institutions manage risks effectively, streamline reporting, and enhance their risk modeling capabilities. The launch could enhance the company’s position in the fintech market.
For the fiscal 2024 third quarter ended December 31, 2024, INFY’s revenues increased 5.9% year-over-year to $4.94 billion. Its operating profit rose 10.1% from the year-ago value to $1.05 billion. Additionally, the company’s net profit and EPS grew 9.8% and 5.6% from the prior year’s quarter to $806 million and $0.19, respectively.
Analysts expect INFY’s revenue for the fiscal 2025 fourth quarter (ending in March) to increase 7.1% year-over-year to $4.86 billion. Also, the company has surpassed the consensus revenue estimates in three of the four trailing quarters.
Looking forward, INFY’s revenue for the fiscal 2026 first quarter (ending in June 2025) is expected to rise 7.3% year-over-year to $5.04 million.
INFY’s stock has surged 24.6% over the past nine months, closing the last trading session at $21.35.
INFY’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
INFY has an A grade for Stability and Quality and a B for Momentum. Within the A-rated Outsourcing - Tech Services industry, it is ranked #6 out of 9 stocks.
Click here to access INFY’s Value, Sentiment, and Growth ratings.
Stock #2: Sea Limited (SE)
Headquartered in Singapore, SE engages in the digital entertainment, e-commerce, and digital financial service businesses. The company offers the Garena digital entertainment platform, SeaMoney digital financial services, and Shopee e-commerce platform.
On September 30, 2024, SE announced a strategic alliance with Bangkok Bank PCL (BKKF.BE), BTS Group, Saha Group, and Thailand Post, four leading Thai companies, to apply for a Virtual Bank license in Thailand.
The alliance aims to leverage the companies’ strengths to deliver innovative digital financial services, particularly for underserved segments of the population. This move could bring in more users and consumers to SE’s financial platforms, facilitating its long-term growth.
For the fiscal 2024 third quarter that ended September 30, 2024, SE’s revenue increased 30.8% year-over-year to $4.33 billion. Its operating income came in at $22.42 million, compared to an operating loss of $127.74 million in the previous year’s quarter.
The company’s net income and EPS amounted to $153.32 million and $0.24 compared to a net loss and loss per share of $143.98 million and $0.26 in the previous year’s quarter, respectively.
Street expects SE's revenue for the fiscal 2024 fourth quarter that ended December 2024 to increase 28.4% year-over-year to $4.64 billion. Its EPS for the same period is expected to grow significantly from the prior year’s quarter to $0.69. The company has surpassed the consensus revenue estimates in all four trailing quarters, which is impressive.
Shares of SE have surged 80.1% over the past nine months and 195.2% over the past year, closing the last trading session at $132.83.
SE’s robust fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
SE has an A grade for Growth and a B for Sentiment and Quality. Within the A-rated Internet industry, it is ranked #19 out of 49 stocks.
To access SE’s Momentum, Value, and Stability ratings, click here.
Stock #1: NetEase, Inc. (NTES)
Headquartered in Hangzhou, China, NTES provides online games, music streaming, online intelligent learning services, and internet content services businesses. It has three segments: Games and Related Value-Added Services; Youdao; Cloud Music; and Innovative Businesses and Others.
On October 14, 2024, NTES announced Destiny: Rising, a new free-to-play mobile sci-fi RPG shooter featuring a variety of playable hero characters, a shared world, and an abundance of game modes, all set within the rich tapestry of the Destiny Universe.
The new and exciting release could bring in new players and help restore customer confidence in the company’s game-making capabilities, setting NTES up for successful future games.
For the fiscal 2024 fourth quarter (ended December 31, 2024), NTES’ net revenues amounted to $2.23 billion. Its operating profit grew 13.9% from the year-ago value to $1.07 billion.
Moreover, non-GAAP net income attributable to NETS shareholders and non-GAAP net income per share increased 31.2% and 33% from the prior year’s quarter to $1.33 billion and $0.41, respectively.
The consensus revenue and EPS estimates of $3.98 billion and $1.97 for the fiscal 2025 first quarter (ending in March) reflect a year-over-year increase of 7.2% and 9.2%, respectively. Moreover, the company has surpassed the consensus EPS estimates in three of the four trailing quarters.
NTES’ stock has surged 9.6% over the past six months to close the last trading session at $101.42.
NTES’ POWR Ratings reflect its strong fundamentals. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
NTES has an A grade for Stability and a B for Value, Sentiment, and Quality. Within the A-rated China industry, NTES is ranked #2 out of 43 stocks.
In addition to the POWR Rating highlighted above, you can check NTES’s ratings for Growth and Momentum here.
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INFY shares fell $0.17 (-0.80%) in premarket trading Friday. Year-to-date, INFY has declined -2.60%, versus a 4.15% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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