UBS: AI demand shows no signs of slowing, bank sticks with chip stocks

Hartmut Issel of UBS Wealth Management told Bloomberg Television that the bank sees "absolutely no signs" of a slowdown in demand for artificial intelligence. UBS is still holding a "slightly above neutral" position on semiconductor stocks.

What exactly did the UBS representative say?

Issel said that despite talk of a possible bubble in AI stocks, corporate demand for AI technology remains strong. UBS Wealth Management is not shifting its investment strategy toward a more cautious stance.

"Absolutely no signs of any slowdown" in AI demand,

Hartmut Issel said on Bloomberg Television.

• UBS Wealth Management is keeping a "slightly above neutral" (slightly overweight) position on semiconductor stocks
• The remarks came in an interview with Bloomberg Television
• The speaker is Hartmut Issel of UBS Wealth Management

Why it matters for the market

Investors watch commentary from major wealth managers like UBS to gauge whether the AI sector is in sustained growth or on the verge of a correction. Chipmaker stocks have been one of the main drivers of stock index gains over the past two years. They still suffer periodic sell-offs, however, amid concerns over whether AI companies can recoup their massive capital spending on data centers and hardware. UBS's stance signals that at least some major asset managers don't see those concerns as a reason to cut their chipmaker allocations.

What this means

As long as big banks like UBS publicly reaffirm their bet on the semiconductor sector, the market will read it as a sign that the AI investment cycle is far from over. Still, the managers themselves note that their overweight is only "slightly" above neutral, not aggressive.