UBS Predicts AI Investment Cycle Boosts Amazon and Palantir Stocks

The AI investment cycle is still in its early stages according to UBS analysts. They see opportunities for investors across technology, media, and telecommunications as companies move from experimenting with AI to deploying it at scale.

The UBS team has identified 14 'highest-conviction calls' across the TMT sectors. Many of these companies are positioned to benefit from continued spending on AI infrastructure, cloud services, chips, networking equipment, and enterprise software.

Of the companies surveyed by UBS on agentic AI deployment, only 8% had implemented the technology at scale. The analysts expect businesses to increase spending on AI infrastructure even as some companies consolidate technology vendors and reduce broader IT budgets.