Report published September 28, 2026
How Can I Broaden Beyond Tech in US Equities? UBS Portfolio Positioning & Market Outlook
UBS · September 28, 2026
UBS projects US equities to advance toward an S&P 500 target of 8,400 by June 2027 on strong earnings and resilient growth. The CIO recommends rebalancing out of concentrated megacap tech positions into sectors like industrials, financials, and consumer discretionary.
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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.
Key Takeaways
- 1.US equity markets are poised to rise over the next 12 months, with the S&P 500 forecast to reach 8,400 by June 2027 supported by solid earnings and easing inflation.
- 2.While AI remains a multi-year structural opportunity with global capex reaching $1.2tr by 2027, equity gains are broadening into cyclical and non-tech sectors.
- 3.Investors should mitigate high concentration risks in megacap tech by diversifying into consumer discretionary, financials, healthcare, industrials, utilities, and structured preservation investments.
Table of Contents
- Key message
- 01 We believe AI remains a powerful structural investment opportunity.
- 02 But we expect future gains to come from a broader range of sectors, beyond US megacaps.
- 03 We believe investors should take steps to rebalance concentrated positions.
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Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| S&P 500 Price Target | 8400 index points | Target for the S&P 500 index by June 2027 |
| S&P 500 EPS (Current Year) | 350 USD | Forecast earnings per share for this year |
| S&P 500 EPS (Next Year) | 400 USD | Forecast earnings per share for next year |
| Global AI-related Capex Forecast | 1.2 USD trillion | Projected global AI-related capital expenditure in 2027 |
| S&P Global US Flash Composite PMI | 58.4 index points | Fourth consecutive month of acceleration and strongest expansion in private-sector activity since July 2021 |
Reports in this series
UBS House View Briefcase is shown in chronological order through this edition, published on September 28, 2026.
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