AI Volatility Is Back But The Capex Story Still Looks Firm

Despite recent market volatility in AI tech stocks, UBS remains constructive on the sector, citing robust long-term capex plans and the next growth phase driven by agentic AI.

Key Takeaways

• 1.Recent AI-related stock sell-off is viewed as a positioning reset rather than an end to the cycle.
• 2.Capital expenditure for AI infrastructure remains firm, supported by massive funding rounds from major tech firms.
• 3.The next phase of the AI cycle is expected to benefit a broader hardware scope, including memory, optics, and power management.

Table of Contents

• From Circle One
• Thought of the day
• What to watch: 9 June
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix