UBS is recommending clients dial down their exposure to the Magnificent 7 and buy into ‘overlooked’ Asian technology stocks.

The Swiss bank remains bullish on the sector and equities in general but is wary of both valuations and portfolio concentration. It notes the six biggest US tech stocks alone now outweigh Japan, China, the UK, France and Canada in the MSCI World index.

‘One way to reduce concentration risk is to position into overlooked Asian tech leaders,’ wrote UBS GWM’s Mark Haefele and Min Lan Tan (pictured) in its second quarter outlook.