UBS: Signs Point to China's AI Tech Cycle Nearing Peak, But Pullback Premature

According to UBS, on June 25, signs indicate China's artificial intelligence technology cycle is gradually approaching its peak, but the bank maintains that exiting the sector now would be premature given robust profit momentum through year-end. UBS expects strong revenue and earnings growth to continue supporting AI tech companies through 2026, though volatility may increase as capacity expands. The bank favors industry leaders in key AI subsectors, including optical modules, storage, GPUs, copper-clad laminates, and semiconductor equipment.
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