Report published August 26, 2026
AI Fundamentals Remain Intact Despite Tech Volatility | UBS Research
Source and citation context
- Issuer
- UBS
- Report date
- August 26, 2026
- Analysis as of
- August 26, 2026
Authors / editors: Min Lan Tan (Head Chief Investment Office APAC), Mark Haefele (Global Wealth Management Chief Investment Officer), Daisy Tseng (Strategist), Delwin Kurnia Limas (CIO Equity Strategist), Kevin Dennean (CIO Equity Strategist, US Technology & Telecom), Leslie Falconio (Head of Taxable Fixed Income Strategy, CIO Americas), Frederick Mellors (Strategist)
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
UBS CIO reaffirms conviction in the AI structural growth story despite recent tech volatility, supported by rising token consumption, accelerating cloud monetization, and attractive semiconductor valuations. In macro developments, slightly firmer PCE inflation and easing oil prices keep the focus on short- to medium-term quality bonds.
Key Takeaways
- 1.AI demand remains robust with surging token consumption, and total AI capex is projected to reach USD 1.2 trillion by 2027.
- 2.Monetization has accelerated with major hyperscalers reporting 48% YoY cloud revenue growth in Q2, helping validate sustained infrastructure investments.
- 3.Recent tech valuation pullbacks offer attractive entry points; investors are advised to maintain selective tech exposure across enabling layers (semiconductors, cloud) and defensive tech segments.
Table of Contents
- From the studio
- Thought of the day
- What to watch: 27 August
- Caught our attention
- Market update
- Global asset class preferences definitions
- Appendix
Report data
Market update — as of August 26, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Week-over-week token volume growth | 24.0% | Gauge of AI computing demand from OpenRouter data. |
| Projected total AI capital expenditure | 1.2 USD trillion | Growth of 33% from the 2026 estimate of USD 900 billion. |
| Hyperscaler average cloud revenue growth | 48.0 % YoY | Growth reported by major cloud hyperscalers exceeding consensus expectations. |
| Semiconductor basket forward P/E multiple | 22.0 x | Trades below post-ChatGPT average of 24x and peak of 33x. |
| US Headline PCE Inflation | 3.7 % YoY | Rose 0.2% MoM and 3.7% YoY, slightly above consensus of 3.6%. |
Reports in this series
Daily Asia is shown in chronological order through this edition, published on August 26, 2026.
Part of the Daily Asia series — view all 13 editions
Looking for the latest edition? Daily Asia en 1666059 (Sep 7, 2026)
- May 14Daily Asia en 1659780
- Jun 4Daily Asia en 1661046
- Jun 25Daily Asia en 1662370
- Jun 29Daily Asia en 1662461
- Jul 2Daily Asia en 1662685
- Jul 3Daily Asia en 1662760
- Jul 7Daily Asia en 1662954
- Jul 13Daily Asia en 1663170
- Aug 4Daily Asia en 1664380
Document Preview
Access the Full Report
Get unlimited access to institutional research reports. Create an account to get started.
Authors / Editors
Reported Data Context
- Week-over-week token volume growth: 24.0 % (Latest week) · Source: OpenRouter
- Projected total AI capital expenditure: 1.2 USD trillion (2027) · Source: UBS
- Hyperscaler average cloud revenue growth: 48.0 % YoY (2Q) · Source: UBS
- Semiconductor basket forward P/E multiple: 22.0 x (Current) · Source: UBS
- US Headline PCE Inflation: 3.7 % YoY (July) · Source: UBS