UBS: AI capital expenditure continues to strengthen, technology supply chain fundamentals are solid

Today, the Taiwan stock market once plummeted 3,737.67 points during the session, setting a new record for the largest drop in intraday history. The weighted index reached the lowest point of 37,837.05 points. Large electronic weight stocks fell to the ground one after another.

Regarding the AI ​​industry and the market outlook, Randy Abrams, head of research at UBS Securities Taiwan, said today that although the market has experienced recent fluctuations and some profit-taking selling pressure, looking back at the core fundamentals, major hardware and chip suppliers are still in an excellent competitive position and continue to deliver good operating performance. Therefore, he believes that after valuation modifications and adjustments, the long-term growth prospects and market positioning of the overall technology industry are still quite solid.

Ellandi pointed out that for AI-related capital expenditures (CapEx) and long-term plans, many large-scale projects expected to last from 2026 to 2027 have already obtained corresponding permits and budget support. Therefore, there is already a considerable degree of safety buffer in the existing progress, and the risk of project suspension in the short term is relatively low. Observing from the overall supply chain, he believes that the regulation and slowdown of capital expenditures is essentially to make the pace of expenditures more consistent and balanced with the actual free cash flow growth of enterprises. Even if there is discussion in the market about the slowdown in the growth of capital expenditures, the annual growth rate of capital expenditures of relevant leading technology companies is still maintained at a very high level.

In the face of possible changes in stance and policy regulation after the mid-term elections in the United States, Ailandi believes that although the United States may bring hidden concerns or more restrictions in terms of policies and regulations, the rebound power of the global technology community and the huge demand from overseas international markets will provide a strong buffer and room for maneuver.

Swiss bank (UBS) held the "UBS Innovation Technology CEO Summit (DTS)" in Taipei for the first time today. Ken Chen, Vice Chairman of UBS Taiwan, said that Taiwan has long played an important role in the global technology ecosystem. What is particularly noteworthy at this moment is that AI is driving industrial change at a faster speed and on a larger scale, and is also creating new opportunities for all walks of life. Therefore, DTS, which moved to Taiwan for the first time, allows UBS to closely connect the talents and innovative thinking that will lead the next wave of technological development with the business and investment issues that clients are concerned about.

With the theme of "Shaping the Age of Possibility", this summit connects technology, business and investment. The topics comprehensively cover the fields of AI infrastructure and computing, industrial AI, medical technology, silicon photonics and enterprise AI, combining international perspective with Taiwan's competitive technological strength.

This summit attracted more than 700 investors and business leaders to sign up, including Carl Benedikt, founding director of the Future of Work Initiative at the University of Oxford. Professor Frey, Advantech founder and chairman Liu Kezhen, as well as founders and senior executives from innovative companies such as HistoSonics, Kneron, Guangcheng Research, Hongyu Optoelectronics, Zhibaitechuang and Observe.AI, through keynote speeches, panel discussions, customer-specific meetings and exchange activities, provide participants with more opportunities to exchange opinions in depth and further connect Taiwanese customers, local technology ecosystems and UBS's global network research resources.