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<Research>UBS: AI-related Stocks Hail Re-rating Opportunities; Experience Tells Less Than Halfway Through Rally
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The launch of the DeepSeek R1 model has put China's AI development back on investors' radar, UBS said in its report. The broker tracked AI-related stocks listed in China, which have elevated 15% since the beginning of the year, outperforming the MSCI China Index by 9%. Fundamentally, AI accounts for a limited share of most companies' revenues, and intense competition may curb earnings upside in the near term, the report said. However, the uptrend in tech stocks usually leads to higher share prices ahead of earnings. Given abundant liquidity and lower interest rates in 2025, the broker spotted valuation re-rating opportunities in AI-related companies. The brokers said that a review of the 4G, 5G and cloud computing eras showed that related companies have outstripped the market by 50-100% and these uptrends usually last 1-2 years. Therefore, it seems that it is less than halfway through the rally. AAStocks Financial News |
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