TREE NEWS reports: UBS strategists led by Bhanu Baweja said the AI-driven equity rally is broadening rather than fading, as AI-related spending increasingly converts into earnings across industrials, healthcare, utilities and financials. They favor keeping AI exposure while adding protection against underpriced macro risks, and forecast the S&P 500 at 8,100 by end-2026 — about 6% above Monday’s close — and 8,900 in 2027. The Stoxx Europe 600 is seen at 690 by end-2026 and 760 a year later.
UBS strategists see broadening AI stock rally, S&P 500 at 8,100 by end-2026
AI take
The call's significance lies less in the target than in the mechanism: UBS is arguing AI capex is finally showing up in earnings beyond the obvious technology names, which is what would justify a broader index base rather than a narrow one. That framing matters for how concentration risk is read, and the simultaneous push for macro protection suggests the strategists see the upside and the fragility as the same trade. Whether the earnings broadening they describe actually shows up outside tech is the open question.
Generated by AI for reference only.
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