How to layout technology stock investments in Asia? UBS released an institutional view on March 1st, stating that global technology stocks have performed well this year, mainly due to their financial performance and positive outlook for the next 6 to 12 months. The institution stated that it remains optimistic about the artificial intelligence (AI) sector.
UBS stated that it continues to be optimistic about AI beneficiaries. The institution believes that AI will be the technology theme for the next 10 years, with the fastest growing and potentially largest sub sector in the global technology sector. UBS predicts that from 2022 to 2027, the revenue of the AI industry may increase 15 times from $28 billion to $420 billion, corresponding to a 72% annual compound growth rate.
At the same time, UBS analyzed that in the short term, most of the investment in generative AI computing will focus on the data center, especially the purchase of GPU, while the unit investment required for terminal AI chips and AI edge computing is relatively low. It is suggested to focus on AI edge computing investment or benefit the technology industry chain.
In addition, UBS stated that from an investment perspective, investing in specific technology giants with a high market share will bring high returns. The institution believes that technology giants will continue to generate higher risk return rates.