AI Outlook Remains Strong Despite Market Headwinds

While rising yields and high valuations are causing short-term volatility in tech, UBS maintains a positive long-term outlook on AI fundamentals and monetization.

Key Takeaways

• 1.NVIDIA beat revenue and earnings expectations with 92% YoY growth in data center revenue, yet shares dipped slightly due to broader macro headwinds.
• 2.Bank Indonesia delivered a surprise 50bps rate hike to 5.25% to support the rupiah and combat inflation amid Middle Eastern conflict volatility.
• 3.European EV demand remains strong, rising 34% YoY in April, as high oil prices (Brent at USD 109.8/bbl) drive structural electrification.

Table of Contents

• From Circle One
• Thought of the day
• What to watch: 21 May
• Caught our attention
• Indonesia's central bank delivers larger-than-expected rate rise.
• European EV demand accelerates.
• Market update
• Global asset class preferences definitions
• Appendix
• Risk Information

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