Weekly Power Brief

Latest edition · September 28, 2026

Transformational Innovation Opportunities (TRIO) en 1667002

UBS CIO reaffirms a positive stance on the 'Power and resources' thematic portfolio despite recent market volatility and headline concerns around AI pace and data center moratoriums. Field meetings with US electrical equipment and industrials management teams reveal robust long-cycle demand, expanding backlogs, and accelerating short-cycle orders.

UBS CIO addresses recent market weakness across the 'Power and resources' theme caused by AI safety debates, higher rate expectations, and project delays like Oracle's Project Jupiter. UBS argues that these headline risks do not undermine long-term earnings power, pointing out that data centers comprise merely 8% of a forecasted USD 32tr ten-year global spend on electrical infrastructure. Direct discussions with management teams from US industrial leaders like Forgent Power Solutions, Eaton, Honeywell, and GE Vernova indicate firm demand, strong pricing power, and high revenue visibility into 3Q earnings and beyond.

Key takeaways from the latest edition

• 1.Recent negative headlines regarding AI development guardrails, data center moratorium risks, and rate expectations create an attractive valuation entry point without impairing core earning power.
• 2.Electrification demand extends far beyond AI data centers, which represent only 8% of the projected USD 32tr global electrical infrastructure capex over the coming decade.
• 3.Management commentary across electrical equipment and industrial companies confirms robust long-cycle backlogs and accelerating short-cycle book-and-ship orders heading into 3Q results.

What this series covers

• Weekly performance update
• Thoughts of the week
• A barrage of disquieting headlines—what do they mean for Power and resources?
• US industrial companies strike a positive tone into 3Q earnings
• Forgent Power Solutions
• Eaton
• Honeywell
• GE Vernova (not in P&R, but a peer to Siemens Energy and Mitsubishi Heavy)
• Glencore updates
• Quotes of the week
• Risk table
• 12-month CIO selection changes history
• Equity selection system
• Equity selection: An assessment relative to a benchmark
• Global asset class preferences definitions
• Current CIO GWM Americas global rating distribution
• Current UBS CIO global rating distribution (as of last month-end)

Edition archive

• Transformational Innovation Opportunities (TRIO) en 1667002

  September 28, 2026

• Transformational Innovation Opportunities (TRIO) en 1665866

  September 4, 2026

• Transformational Innovation Opportunities (TRIO) en 1665079

  August 27, 2026