Positioning for a More Balanced AI Exposure

UBS is taking a more balanced stance on AI exposure by trimming semiconductor holdings in favor of defensive tech and fintech names. While structural AI demand remains robust, demanding valuations and geopolitical risks suggest a more cautious near-term tactical positioning.

Key Takeaways

• 1.UBS has tactically reduced semiconductor exposure from 80% to 60% in its AI portfolio due to richer valuations and elevated geopolitical risks.
• 2.The CIO is reallocating capital toward more defensive tech giants (Microsoft, Apple) and select fintech opportunities (Visa, CME).
• 3.Structural AI demand remains intact, supported by strong monetization (Anthropic) and massive hyperscaler backlogs totaling USD 2tr.

Table of Contents

• Our view
• Appendix
• Required Disclosures
• Equity selection system
• Equity selection: An assessment relative to a benchmark
• Global asset class preferences definitions
• Statement of Risk
• Risk Information

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